RAJIV SHARMA AND SAEED -UZ -ZAMAN SIDDIQI, JJ. - (1.) HEARD Mr. Pradeep Agrawal, learned Counsel for the petitioner and Mr. D. D. Chopra, learned Counsel for the opposite parties.
(2.) THE petitioner is a company with the entire shares owned by the Central Government and the State of Uttar Pradesh registered under the Companies Act, 1956 and the administrative and financial control vests with the State of 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 proceedings upto the assessment year 2008 -09 were completed and account books were duly accepted but while going through the account books as well as the reports of the Comptroller & Auditor General of India and the Accountant General and the auditor's report submitted by Asija & Associates, during the assessment proceedings for the Assessment Year 2010 -11, the Assessment Officer noticed certain discrepancies which are complex in nature and not understandable and as such, the Assessing Authority after obtaining necessary approval from the competent authority, issued a show cause notice under Section 142 (2) (A) for appointment of a Special Auditor for examining the books of accounts to which reply was tendered, but the reply so tendered was not found satisfactory and as such, orders were passed for appointment of a Special Auditor to audit the accounts books of the petitioner by M/s Mahendra Kumar Satya & Company, Chartered Accountants, 4th Floor, Sri Ram Tower, Ashok marg, Lucknow, which in turn is directed to furnish a report of such audit in the prescribed form duly signed and verified by the Chartered Accountant. Being aggrieved by the said order, the instant writ petition has been filed.
(3.) LEARNED Counsel for the petitioner submits that the accounts which are maintained are not complex or understandable. There is no basis for justification to get the same audited in exercise of the powers conferred under Section 142 (2A) of the Act. Next he submitted that the impugned order dated 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.;