- (1.) The petitioner is a partnership firm and came into existence on 18th August, 2003 and, therefore, the first assessment year was 2004-05. The petitioner is engaged in the business of development of real estate. The principal place of business as indicated in the returns was situate at E-41, Ashok Vihar, Phase I, New Delhi. Subsequently, the office was shifted on 18th October, 2007 at A-193, Ist Floor, Okhla Industrial Area, Phase I, New Delhi. Due intimation was given to the income tax authorities on 18th October, 2007 and acknowledgement was received by the petitioner on 14th November, 2007 through National Securities Depository Ltd. (NSDL) which is an agency outsourced by the income tax authorities for the purpose of processing the pan cards, change of address, etc.
(2.) A search and seizure operation took place on 15th February, 2008 under Section 132(1) of the Act at the business premises of the petitioner's firm at A-193, Ist Floor, Okhla Industrial Area, Phase I, New Delhi. Number of documents and cash was seized and a panchanama was prepared. It transpires that the Commissioner of Income Tax, Delhi-VIII issued an order dated 23rd September, 2008 under Section 127 of the Act transferring the case from the Assistant Commissioner of Income Tax, Circle 23(1), New Delhi to the Assistant Commissioner of Income Tax, Central, Circle Meerut. The petitioner contended that he was unaware of this order and came to know for the first time on 31st August, 2009 when he received a notice under Section 153A of the Act issued by the Assistant Commissioner of Income Tax, Meerut intimating the petitioner that the income tax return for the assessment year 2008-09 has not been filed and directed the petitioner to show cause as to why action under Section 271F of the Act should not be initiated. The petitioner appeared and filed his objections contending that the Assistant Commissioner of Income Tax, Meerut had no jurisdiction to proceed with the case and that the order of the Commissioner of Income Tax, New Delhi dated 23rd September, 2008 was patently illegal, inasmuch as it was passed in violation of the principles of natural justice. It was contended that no notice or opportunity of hearing was provided by the Commissioner of Income Tax, New Delhi before transferring the jurisdiction to the Commissioner of Income Tax, Meerut and, therefore, the said order is void. Inspite of such objection being filed, the Assistant Commissioner of Income Tax, Meerut issued a notice under Section 143(2) of the Act directing the petitioner to attend the proceedings for completion of the assessment for the assessment year 2008-09.
(3.) The Assistant Commissioner of Income Tax, Meerut issued a notice dated 25th November, 2009 directing the petitioner to submit various information in connection with the assessment proceedings under Section 153A of the Act. As many as 43 queries were raised and query no.43 directed the petitioner to produce the complete books of accounts including subsidiary books of accounts and bills and vouchers and fixed 4th December, 2009 for hearing. The petitioner has contended in paragraph 39 that no hearing took place on 4th December, 2009 as the Assistant Commissioner of Income Tax, Meerut was preoccupied with other official engagements and, therefore, the books of accounts could not be examined. Thereafter, it is contended that the Assistant Commissioner of Income Tax, Meerut issued a show cause notice dated 7th December, 2009 directing the petitioner to show cause as to why an order for conducting a special audit under Section 142(2A) of the Act be not passed since the authority was of the opinion that there was inaccuracy in the accounts and complexity arising therefrom. The petitioner filed his objection and, thereafter, the authority passed an order dated 18th December, 2009 directing that the accounts should be audited under Section 142(2A) of the Act for the assessment years 2002-03 to 2008-09 by M/s Tandon Seth and Company, Chartered Accountants, Kanpur. The petitioner also contended that the Commissioner of Income Tax, New Delhi issued a corrigendum dated 26th October, 2009 correcting an error in its order dated 23rd September, 2008. The petitioner contended that even this order was passed ex-parte without issuing any notice and without giving an opportunity of hearing. With these facts, the petitioner filed the present writ petition praying for the quashing of the order dated 23rd September, 2008 passed by the Commissioner of Income Tax, New Delhi and the corrigendum dated 26th October, 2009 transferring the proceedings under Section 127 of the Act to the Assistant Commissioner of Income Tax, Meerut. The petitioner has also prayed for the quashing of the notice under Section 153A of the Act dated 30th October, 2009 issued by the Assistant Commissioner of Income Tax, Meerut for the assessment years 2002-03 to 2007-08 and for quashing the order dated 18th December, 2009 issued by the Assistant Commissioner of Income Tax, Meerut directing special audit to be conducted under Section 142(2A) of the Act for the assessment years 2002-03 to 2008-09 by M/s Tandon Seth and Company, Chartered Accounts of Kanpur.;