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CS Professional · Advanced Direct Tax Laws and Practice · Tax Audit

Under the Income-tax Act, 2025, when the Assessing Officer directs a special audit during assessment inquiry, who nominates the accountant?

The accountant for a special audit under the assessment inquiry provision is nominated by the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner, not by the assessee or the Assessing Officer. The Central Government pays the audit expenses as determined by that authority.

  1. AThe assessee chooses the accountant
  2. BThe Assessing Officer alone
  3. CThe Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or CommissionerCorrect
  4. DThe Institute of Chartered Accountants of India

Explanation

Section 268(6) provides that the accountant is nominated by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner. The direction itself needs their previous approval, and the expenses are paid by the Central Government, not the assessee.

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