- (1.) SAHARA India Mutual Benefit Co. Ltd., Sahara India (Firm), Sahara India Financial Corpn. Ltd., Sahara India Airlines and Sahara India Mass Communication have filed the present writ petition assailing the order passed on various dates by Shri M.C. Baurai, Dy. CIT, by means of which the petitioners were directed to get their accounts audited for the various assessment years mentioned in the impugned orders by the Chartered Accountant and furnish the report of such audit in the prescribed form duly signed and verified by the Chartered Accountant. In addition to the particulars prescribed in Form No. 6B r/w r. 14A of the IT Rules, 1962, the Chartered Accountant was asked to furnish the report on certain other points mentioned in the Annexure enclosed an Annexure-A. The audit report under S. 142(2A) of the IT Act, 1961 ('the Act') should be furnished before the authority passing the order by 30th April, 2000. The petitioners were to pay the audit fee which was tentatively determined. It was further provided in the impugned order that the amount in addition to other expenses incidental to audit to be paid by the petitioners to the Chartered Accountants in accordance with law and procedure.
(2.) BEFORE dealing with the factual metrix as set out in the writ petition in short compass and the law on the subject, it would be relevant to glance over the provisions of S. 142(2A) which reads as under : "(2A) If, at any stage of the proceedings before him, the AO, having regard to the nature and complexity of the accounts of the assessee and the interests of the Revenue, is the opinion that it is necessary to do so, he may, with the previous approval of the Chief CIT or CIT, direct the assessee to get the accounts audited by an accountant, as defined in the Explanation below sub-s. (2) of S. 288, nominated by the Chief CIT or CIT in this behalf and to furnish a report of such audit in the prescribed from duly signed and verified by such accountant and setting forth such particulars as may be prescribed and such other particulars as the AO may require." If we split the provisions then it would transpire the following ingredients must be fulfilled before an assessee be directed to get his account audited by the Special Audit by the AO : 1. The account books of the petitioners should be of complex nature; 2. The Special Audit should be in the interest of Revenue; 3. The Special Audit must be necessary because of the aforesaid complexity and interest of Revenue; 4. There should be previous approval of the Chief CIT or the CIT; 5. The Special Audit, having regard to the aforesaid necessity, must be relevant for the assessment proceedings.
(3.) IT is not the case of the petitioners that the previous approval of the Chief CIT or CIT, has not been obtained. The only grievance of the petitioners appears to be is that the orders by means of which the approval was granted was not furnished to the petitioners.;