- (1.) By means of the present writ petition filed under Article 226 of the Constitution of India, the petitioner, Ghaziabad Urban Co-operative Bank Ltd., seeks the following relief: (i) To issue a writ, order or direction in the nature of certiorari, quashing the notice dated March 28, 2006 issued by respondent No. 3 (annexure 8 to the writ petition) appointing special auditor illegally and arbitrarily. (ii) To issue a writ, order or direction in the nature of mandamus directing respondents Nos. 2 and 3 to stop the proceedings of special audit for the assessment year 2003-04. (iii) To issue any other writ or order which this hon'ble court may deem fit and proper in the circumstances of the case. (iv) To award the cost of the petition to the petitioner.
(2.) Briefly stated the facts giving rise to the present writ petition are as follows.
(3.) According to the petitioner, it is a co-operative society registered under the provisions of the U.P. Co-operative Societies Act, 1965, with its registered office at Ghaziabad. It has also been authorised by the Reserve Bank of India to carry on banking activities in the State of Uttar Pradesh. It has also been permitted to open branches. For the assessment year 2003-04, the petitioner had filed the return of income on October 21, 2003 showing a total income at Rs. 47,74,043.99 and claimed exemptions under Section 80P of the Income-tax Act, 1961 (hereinafter referred to as "the Act") on the entire amount. Its accounts have been audited by the auditors appointed by the Registrar of Co-operative Societies as also under the provisions of Section 44AB of the Act. The Additional Commissioner of Income-tax, Range-II, Ghaziabad, respondent No. 3, who is the Assessing Officer of the petitioner issued a show cause notice on October 25, 2005, purporting to be under Section 142(1) of the Act calling upon the petitioner to furnish certain explanations and also produce the books of account and other relevant documents mentioned therein. The petitioner submitted its reply on December 9, 2005. Another notice was issued on January 4, 2006 and February 14, 2006 calling upon the petitioner to furnish certain more informations, to which the petitioner submitted its reply on February 28, 2006, March 6, 2006 and March 20, 2006. However, vide order dated March 28, 2006, the petitioner has been informed by respondent No. 3 that M/s. Ban-shal Gupta and Associates, Ghaziabad have been appointed as special auditor under Section 142(2A) of the Act for the audit of the accounts of the petitioner for the assessment year in question. The petitioner submitted its objection to the appointment of the statutory auditor and also wanted to know the reasons and the circumstances under which the said auditor has been appointed. The reasons have not been supplied. The petitioner has approached this Court challenging the order by which the special auditor has been appointed on the ground that respondent No. 3 did not have any material before him for forming an opinion regarding the nature and complexity of the accounts of the petitioner and further the interests of the Revenue was not to be affected inasmuch as the accounts of the petitioner-bank had been statutorily audited both under the provisions of the U.P. Co-operative Societies Act, 1965, as also under Section 44AB of the Act.;