TMI Blog1988 (1) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... ertiorari for quashing the order dated February 17, 1984, annexure 3 to the writ petition, passed by the Inspecting Assistant Commissioner of Income-tax (Assessment). Upon a perusal of annexure 3 to the writ petition, it appears that the Inspecting Assistant Commissioner (Assessment) while issuing directions regarding audit for the assessment years 1979-80 to 1981-82 was of the view that special a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mills Company Ltd. v. CIT [1988] 171 ITR 634 by a Division Bench of this court is on the same point. Having considered the relevant legal provisions and the instructions issued by the Department, the Bench, in the case referred to above, held that it is not the subjective satisfaction of the assessing authority but the objective assessment that is required on the question, whether or not special a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner (Assessment). This fact implies that the assessee was not sure about the correctness of the account books. Otherwise, there was no need for the assessee to name the balance-sheet and profit and loss account as provisional. Naming the balance-sheet and the profit and loss account as provisional left scope for the assessee to correct them in future. In annexure 1 to the counter-affidavi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the circumstances stated in the instructions is that where the Income tax Officer has any information necessitating a special audit, directions can be issued for special audit. From the facts of the case, especially that the assessee furnished only a provisional balance-sheet/profit and loss account, it can be said that the Inspecting Assistant Commissioner (Assessment) did receive information t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e reasons stated above, we are of the opinion that the instant case is not one in which the direction as contained in annexure 3 to the writ petition was given by the Inspecting Assistant Commissioner (Assessment) in contravention of the legal provisions or the instructions issued by the Central Board of Direct Taxes. The writ petition, therefore, fails and is dismissed. There shall, however, be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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