TMI Blog2023 (10) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... complexity of accounts, volume of accounts, doubts about correctness of accounts, multiplicity of transactions and specialized nature of business are involved, besides the pre-dominant element of interest of the Revenue. From the very language of sub-section (2A) of Section 142, it is obvious that the same is worded in language which is very wide and inclusive. The paramount interest seems to be to avoid evasion of tax and to prevent the defaulter from slipping out of income tax nets. Thus, the provision u/s. 142(2A) is to be read liberally in favour of the Revenue with the only safeguard of prior opportunity of being heard to the assessee which in the present case has been complied with. The objection of petitioner that there is no mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n-speaking and has been mechanically passed. It is also submitted that interest of Revenue does not suffer and thus the impugned order is unwarranted. It is further urged that the petitioner is a Government owned body and not a private assessee and, therefore, manipulation of account is ruled out. 5. Learned counsel for petitioner has relied upon decisions of Apex Court in Sahara India (Firm), Lucknow Vs. Commissioner of Income Tax, report in (2016) 2 ITJ Online 460 (SC) ; Delhi High Court in Delhi Development Authority another Vs. Union of India and another , reported in (2013) 259 CTR (Del) 518 ; and High Court of Himachal Pradesh in H.P. State Forest Corporation Vs. Joint Commissioner of Income Tax , (2001) 252 ITR 833 (HP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled written submission, after perusal of which the competent authority vide note-sheet dated 18.12.2018 came to following tentative conclusions : (i) The net profit, in this year is at 40% which in the first previous year was estimated by the AO 18% (the same was restricted to 3% by the CIT, Appeal) and therefore the special audit will not yield any benefit to the revenue. (ii) The assessee maintains cash system of accounting and hence the balance sheet can not be prepared. The figure of Rs. 1 (on both the side of balance sheet) has been shown because the system does not accept the audit report without there being a balance sheet. (iii) Since the assessee maintains its accounts on cash system basis, only income expenditure ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority. 8.1 The objection of petitioner that there is no material to show that interest of Revenue was adversely affected hence the special audit was not helpful, has no legs to stand in view of element of public interest being pre-dominant in the object behind special audit. The power vested in the Assessing Officer and the approving authority are wide enough to include within its ambit all such matters where complexity of accounts, volume of accounts, doubts about correctness of accounts, multiplicity of transactions and specialized nature of business are involved, besides the pre-dominant element of interest of the Revenue. From the very language of sub-section (2A) of Section 142, it is obvious that the same is worded in language ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 142 (2A) by recording a finding that books of accounts or relevant accounts were not even perused by the Revenue whereas in the instant case, though the petitioner failed to file any balance sheet of profit and loss account but the income and expenditure accounts were produced and perused. However, later in this case balance sheet was manually produced during assessment proceeding for AY 2015-16. The Revenue also noticed from the record produced that the assessee has shown assets and liability of Rs. 1/- which was beyond imagination and impractical. The cash book and receipt and payment register were also seen. Thus, the books of accounts may not be in entirety but to some extent were perused by the Revenue giving an impression that a case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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