77. Inserted by the IT (Second
Amdt.) Rules, 1977.
††††† Object and purpose of getting audit report under both section
142(2A) and section 44AB are almost same; special audit under section 142(2A) can
be resorted to in case of any assessee, if conditions mentioned therein are
fulfilled, irrespective of limit of annual turnover, whereas compulsory audit
under section 44AB is required in cases where income of assessee exceeds limit
stipulated therein - West Bengal State Co-operative Bank Ltd. v. Joint
CIT  138 Taxman 238/267 ITR 345 (Cal.). Power to direct audit cannot
be exercised after a mere cursory look at the accounts; there should be an
honest attempt to understand the accounts - Swadeshi Cotton Mills Co. Ltd. v.
CIT  171 ITR 634 (All.). Power can be exercised even if accounts
have been audited under any other law - Jagatjit Sugar Mills Co. Ltd. v.
CIT † 210 ITR 468/74 Taxman
8 (Punj. & Har.). See also Gurunanak Enterprises v. CIT 
259 ITR 637/130 Taxman 23 (Delhi).
A direction for special audit where assessee has filed only provisional
accounts is valid - U.P. State Handloom Corporation Ltd. v. CIT 
171 ITR 640 (All.). For guidelines on selection of cases, refer Instruction
Nos. 1076, dated 12-7-1977, 1415, dated 23-9-1981 and 1770, dated 19-8-1987.
Reasons need not be recorded for ordering special audit - Ramesh Chand
Industries Ltd. v. Union of India
 100 Taxman 570 (Delhi).
Where prima facie case is made out, order cannot be stayed - Narinder
Singh Atwal† v. Dy. CIT
 231 ITR 641 (Cal.).
No notice need be given before issuing directions under section 142(2A) - Jhunjhunwala
Vanaspati Ltd. v. Asstt. CIT  137 Taxman 214 (All.). [Per
contra : Dy. CIT v. Muthootu Mini Kuries  128 Taxman 240
(Ker.)]. Where for auditing books of account of assessee, Deputy Commissioner
passed order under section 142(2A) without giving an opportunity of hearing to
assessee and refusing assesseeís request for supply of reasons therefor, action
of Deputy Commissioner was vitiated in law - Rajesh Kumar v. Dy. CIT 
157 Taxman 168 (SC). When power of special audit under section 142(2A) is
sought to be exercised, Assessing Officer must invariably give opportunity of hearing
to assessee to explain away his doubt; further, Commissioner should not give
any approval mechanically - West Bengal State Co-operative Bank Ltd. v. Joint
CIT  138 Taxman 238/267 ITR 345 (Cal.).† [Per contra : YUM Restaurants India
(P.) Ltd. v. CIT  146 Taxman 196 (Delhi)/UP
Financial Corpn. v. Jt. CIT  147 Taxman 21 (All.).] For
details, see Taxmannís Master Guide to Income-tax Rules.