Sections 161 and 177 of the ITO Work Independently of each other: SC


The question before the Supreme Court in CIVIL PETITIONS NO.1920 TO 1924 OF 2022,ย was a legal question as to whether the Tax Authorities are required to issue order under section 177 of the ITO first and then proceed under section 161. The Court has held that there is no such requirement of pre-audit under section 177 before taking an action under section 161. Both of these sections are independent of each other and the Court is not allowed to give meaning to a word which the Legislature did not intend. It was not the intention of the Legislature that the Commissioner shall order audit first under section 177 of the ITO before having resorted to section 161.
The Court did not entertain the Petition and dismissed the same without granting leave to appeal.

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