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TMI Blog2013 (5) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... U.P. and the Board of Directors consists all the Government Officers. The books of accounts of the Corporation are audited by the statutory auditors duly appointed by the Comptroller & Auditor General of India as well as Accountant General, U.P. All legal compliance are done and the accounts were audited by the Chartered Accountant for the financial year ending on 31.3.2010 relevant to the Assessment Year 2010-11 and on the basis of the said audited accounts, the report was submitted as per provisions of the Income-tax Act. Admittedly, the petitioner is filing its Income Tax Returns regularly from the time it came into existence in 1976 alongwith the audited balance sheet, profit and loss account and the audit report. The assessment proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 28.3.2013 passed under the aforesaid provisions of the Act is totally non-application of mind, in view of the fact the formation of opinion of the Assessing Authority must be objective and not subjective satisfaction. In support of his submissions, Mr. Pradeep Agarwal has relied upon the cases of Delhi Development Authority and another versus Union of India and another [(2013) 350 ITR 432 (Delhi), Rajesh Kumar and others versus Deputy Commissioner of Income-Tax and others [(2006) 287 ITR 91 (SC)] and Sahara India (Firm) versus Commissioner of Income-Tax and another [(2008) 300 ITR 403 (SC)]. Mr.D.D. Chopra, learned Counsel for the opposite parties submits that the Assessing Authority had examined the account books during the course of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stated by Rs.3.03 crore on account of non-provision of liabilities towards encashment of Earned leave of regular staff at increased rates on account of implementation of recommendations of fifth Pay Commission to its employees with effect from 1.7.2009 as approved by its Board of Directors in its meeting held on 4.7.2010 and paid to the LIC of India on 5.8.2010 under Group Leave Encashment Policy. Since the facts were known to the management before finalization of accounts in June, 2011, provision for this liability should have been made in the books of accounts as required in the provisions contained in AS-4. This has also resulted into overstatement of profit for the yea by Rs.3.03 crore. 3. Sundry Debtors Rs.7.69 crore This is overstat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecial Auditor.In support of his submissions, he has relied upon the cases of U.P. State Industrial Development Corpn. Ltd. versus Chief Commissioner of Income-tax [(2011) 203 Taxman 337/15 taxmann.com 65 (Allahabad), Uttaranchal Welfare Society v. Commissioner of Income-tax (All) [(2004) 141 Taxman 560] and Rajesh Kumar Prop. Surya Trading versus Deputy Commissioner of Income-tax [(2005) 144 Taxman 865 (Delhi)]. Thus, the writ petition is liable to be dismissed. In the instant case, the discrepancies in the account books have already been pointed out by the Comptroller and Auditor General as well as in the Auditor's report and further on perusal of the accounts, the Assessing Authority has come to the conclusion that the accounts are compl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, insofar as discrepancies in maintaining the accounts have been pointed by the Comptroller & Auditor General of India. Further, the ingredients of Section 142 (2A) of the Act are that the Assessing Authority must form an opinion with regard to the nature and complexity of the accounts. Therefore, the case laws relied upon by the petitioner's counsel are not applicable in the instant case. With regard to the satisfaction of the Assessing Authority, while referring the matter under Section 142 (2A) of the Act, it is not only the books of accounts, but even by other documents which are available during the course of an assessment and at any stage subsequent thereto may become available to the Assessing Officer. To give a narrow meaning t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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