IN HIGH COURT OF DELHI AT NEW DELHI Date of Order: February 15, 2019 W.P.(C) 1552/2019, C.M. Appl. No. 7151-7152/2019 ORACLE INDIA PVT. LTD ..... Petitioner Through: Mr. M.S. Syali, Senior Advocate with Mr. Satyen Sethi, Mr. Arta Trana Panda, Ms. Gargi Sethee, Advocates versus PRINCIPAL COMMISSIONER OF INCOME TAX, DELHI-7, & ANR. ..... Respondents Through: Mr. Deepak Anand, Advocate for Mr. Zoheb Hossain, Senior Standing Counsel for Revenue CORAM: HON BLE MR. JUSTICE S. RAVINDRA BHAT HON BLE MR. JUSTICE PRATEEK JALAN S. RAVINDRA BHAT, J. (ORAL) 1. Issue Notice. Mr. Deepak Anand, Advocate, appearing on behalf of respondent accepts notice of petition as well as of application. 2. assessee seeks orders identical with orders made in relation to special audits directed for Assessment Years 2015-16 and for subsequent years. In previous orders, court had heard other Writ Petitions including W.P.(C) No. 1110/2012, 2353/2013, 2500/2014, 3765/2015, 735/2017 and 3630/2016 as well as W.P.(C) No. 2251/2018, and directed that modified terms of reference made under Section 142(2a) shall be followed in special audit. In present case, modified terms of reference have been indicated in order of Assessing Officer dated 31.12.2018. previous order of this court passed in W.P.(C) No. 2251/2018, inter alia, was to following effect: W.P.(C) No. 1552/2019 Page 1 of 3 "Learned counsel for parties, on instructions, state that modified terms of reference for special audit are acceptable and may be taken on record. modified terms of reference for assessment years ('Ays') 2008- 2009 to 2013-2014 signed by counsel for parties are enclosed as annexure-A to this order and would be treated as part of this order. Learned counsel for parties also agree that special audit under Section 142(2A) of Income Tax Act, 1961 would begin on 1.4.2018 with audit for A Y 2008- 2009. On completion of special audit for Y 2008-2009, special audit for next Y, i.e. 2009-2010 will commence. Thereafter, on completion of special audit for preceding year, special audit for succeeding year would commence. Learned counsel for parties also agree that special audit under Section 142(2A) of Income Tax Act, 1961 would begin on 1.4.2018 with audit for AY 2008- 2009. On completion of special audit for AY 2008-2009, special audit for next AY, i.e. 2009-2010 will commence. Thereafter, on completion of special audit for preceding year, special audit for succeeding year would commence. In order to ensure that there is no dispute or debate about limitation, it is directed that interim orders staying special audit and assessment proceeding for A Y 2009- 2010 and subsequent years would continue till special audit for immediate preceding year is completed. This direction is acceptable to both petitioner and respondents. Interim order for A Y 2008-2009 would remain in force till31.3.2018. This statement and direction is justified and necessary, as simultaneous special audit for all years would create difficulties, cause inconvenience and would require huge manpower. Further, issues overlap and some issues may not require examination in view of finding in earlier year. This would be aspect to be examined and considered by assessing officer ('AO') and special auditor. petitioner, of course, will be at liberty to W.P.(C) No. 1552/2019 Page 2 of 3 approach AO and special auditor, on basis of audit or assessment orders passed for earlier year. In case any issue cannot be resolved or settled, parties can approach court by way of application in present writ petitions. We also clarify that this consent order would not affect advance pricing agreement proceedings, which are stated to be pending. Writ petitions are accordingly disposed of, with no order as to costs." 3. This court also clarifies that in line with previous orders made in all said writ petitions, simultaneous special audit for all years will create difficulties and also result in overlapping of some issues that may arise during examination in all different years. Assessing Officer and Special Auditor may examine these aspects also. It is open to petitioner/assessee to approach AO and special auditor on basis of audit and assessment order passed in earlier years. In event it is necessary to resolve any such incidental issue, parties are at liberty to approach this court. 4. Furthermore, Special Auditor shall adhere to terms of reference (contained in order dated 31.12.2018) while carrying out task assigned to him. 5. writ petition and application is disposed of in above terms. S. RAVINDRA BHAT, J PRATEEK JALAN, J FEBRUARY 15, 2019 pkb W.P.(C) No. 1552/2019 Page 3 of 3 Oracle India Pvt. Ltd. v. Principal Commissioner of Income-tax, Delhi-7 & Anr