TMI Blog2001 (6) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... ange, Shimla, H. P., on June 19, 2000. By the said communication, a special audit was sought to be conducted in accordance with sub-section (2A) of section 142 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). It was stated in the impugned order that having regard to the nature and complexity of the accounts of the assessee-company and in the interests of the Revenue, it has been considered necessary to get its accounts audited for the financial years 1996-97 to 1998-99 relevant to the assessment years 1997-98 to 1999-2000, as provided in the Act. It was further stated that for the said purpose, necessary approval had been accorded by the Commissioner of Income-tax, Shimla, and he has directed the office of the joint Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Officer, the order deserves to be quashed and set aside. Sub-section (2A) of section 142 of the Act, which is material, reads as under: "(2A) If, at any stage of the proceedings before him, the Assessing Officer, having regard to the nature and complexity of the accounts of the assessee and the interests of the Revenue, is of the opinion that it is necessary so to do, he may, with the previous approval of the Chief Commissioner or Commissioner, direct the assessee to get the accounts audited by an accountant, as defined in the Explanation below sub-section (2) of section 288, nominated by the Chief Commissioner or Commissioner in this behalf and to furnish a report of such audit in the prescribed form duly signed and verified by such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rted the order passed by the authorities in annexure P-1. Relying upon an affidavit and further affidavit of the respondents, it has been submitted that the relevant considerations have been kept in mind before taking the action. It was, inter alia, contended that considering, (i) past history; (ii) the fact that the petitioner had gone under V. D. 1. S.; (iii) it had not filed audited accounts as is required under section 44AB of the Act and keeping in view all the circumstances, the Assessing Officer was satisfied that this was a fit case to exercise the power and after taking prior approval of the Commissioner the action has been taken. He has further submitted that the petition deserves to be dismissed as no fault can be found against t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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