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TMI Blog2010 (1) TMI 788X X X X Extracts X X X X X X X X Extracts X X X X ..... andra Nigam, JJ. Anurag Khanna and Navin Sinha for the Appellant ASGI, CSC (IT-Dept.) for the Respondent JUDGEMENT Rajes Kumar, J:- Heard Shri Navin Sinha, learned Senior Advocate assisted by Shri Anurag Khanna and Shri A.N. Mahajan, learned Standing Counsel appearing on behalf of the respondents. By means of the present writ petition, the petitioner is challenging the order passed by the Assistant Commissioner of Income Tax (Central Circle), Meerut dated 18.12.2009 passed under Section 142(2A) of the Income Tax Act by which he has directed the petitioner to get its accounts audited for the financial years 2001-02 to 2007-08 relevant to the assessment years 2002-03 to 2008-09 by M/s Tandon Seth and Co., Kanpur, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /09. The audit report u/s 142(2A) of the IT Act should be furnished by you to the undersigned within a period of 90 days from date of receipt of this direction. Perusal of the impugned order reveals that no reason whatsoever has been given. The Apex Court in the case of Sahara India (Firm), Lucknow Versus Commissioner of Income Tax, Central-I and another, (2008) 14 Supreme Court Cases 151 while dealing with the provisions of Section 142(2A) has held as follows:- "6. A bare perusal of the provision of sub-section (2-A) of the Act would show that the opinion of the assessing officer that it is necessary to get the accounts of the assessee audited by an accountant has to be formed only by having regard to:- (i) the nature and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counts maintained by the assessee; appreciate the entries made therein and in the event of any doubt, seek explanation from the assessee. But opinion required to be formed by the assessing officer for exercise of power under the said provision must be based on objective criteria and not on the basis of subjective satisfaction. 8. There is no gainsaying that recourse to the said provision cannot be had by the assessing officer merely to shift his responsibility of scrutinising the accounts of an assessee and pass on the buck to the special auditor. Similarly, the requirement of previous approval of the Chief Commissioner or the Commissioner in terms of the said provision being an inbuilt protection against any arbitrary or unjust exercis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 142(2)(a) there should be application of mind and objective satisfaction on the basis of material. The application of mind and objective satisfaction can only be examined when order reflects so by recording the reasoning. The order is subject to scrutiny under Article 136 and 226 of the Constitution. The order as such must be a speaking order, and the decision given must be supported by reasons, so that the superior Court is assured that it is in accordance with law and is not a result of caprice, whim, fancy, or reached on the basis of policy or expediency. Absence of reasons vitiates the conclusions. (See M/s. Mahabir Prasad Santosh Kumar v. State of U.P., AIR 1970 SC 1302; M/s. Travancore Rayons Ltd. v. Union of India, AIR 1971 S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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