PRAKASH KRISHNA, J. - (1.) PETITIONER , a public limited company, is engaged in the business of manufacture of crystal sugar and sale thereof. It is also engaged in the business of manufacture and sale of industrial alcohol manufactured from molasses. In addition, it has been carrying on the business of generation of power, partly meant for own consumption.
(2.) BY means of the present writ petition which arises out of the proceedings under the Income Tax Act, the petitioner has questioned the legality and validity of the approval order dated 28th December, 2011 (Annexure -2 to the writ petition) passed by the Commissioner of Income Tax (Central), respondent no.1 herein, under section 142 (2A) of the Income Tax Act. The background facts may be noticed in brief. The dispute pertains to the Assessment Year 2009 -2010. The petitioner filed its income tax return disclosing a loss of Rs.16,98,96, 909/ -. The assessment notice under section 143 (2) of the Act was issued on 4th of September, 2010. In response, the petitioner produced its account books for verification before its Assessing Authority namely Deputy Commissioner of Income Tax Central Circle -2, Kanpur, respondent no.2 herein.
(3.) THE Assessing Officer scrutinized the account books on various dates in the light of the reply to his query furnished by the petitioner from time to time. The Assessing Officer thereafter sent a proposal under section 142 (2A) of the Act seeking previous approval of respondent no.1 to direct the assessee to get the accounts audited by special auditor. The respondent no.1 invited objections from the petitioner to the proposal of the Assessing Officer and passed the impugned order dated 28.12.2011 granting approval to direct the assessee toget its account books audited by the special auditor. Challenging the legality and validity of the order dated 28.12.2011, the present writ petition has been filed for quashing the aforesaid approval order dated 28.12.2011. Sri S.K. Garg appeared along with Sri AshishBansal for the petitioner and Shri Bharat JiAgrawal, learned senior counsel along with Shri Ashok Kumar for the respondents. The following two points were urged in support of the petition: -;