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TMI Blog2006 (8) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... sed under section 142(2A) - writ petition is, accordingly, dismissed in limine. - - - - - Dated:- 22-8-2006 - Judge(s) : R. K. AGRAWAL., VIKRAM NATH. JUDGMENT 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 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Banshal 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioner's office on March 7, 2006, respondent No.3 vide letter dated March 24, 2006, sought approval for appointment of the special auditor under section 142(2A) of the Act by recording the following reasons: "In fact overall books of account and subsidiary documents on the basis of which such books are maintained are voluminous, complex and not properly maintained which in the opinion of the undersigned should be subjected to special audit as per the provisions of section 142(2A) of the Income-tax Act, 1961 in the interests of the Revenue." The Commissioner of Income-tax had examined the proposal of respondent No. 3 and communicated the approval for appointment of M/s. Banshal Gupta and Associates as special auditor under section 142(2A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the power to respondent No.3 to order for a special audit under section 142(2A) of the Act. According to him, special audit can only be ordered when the preconditions of sub-section (2A) of section 142 are complied with. He submitted that the requirement of sub-section (2A) of section 142 of the Act is that the Assessing Officer should form an opinion that the accounts of the assessee are complex and the interests of the Revenue requires the special audit failing which, it would not be permissible to invoke the provisions of sub-section (2A) of section 142 of the Act. In support of his plea, he has relied upon a decision of a learned single judge of the Calcutta High Court in the case of West Bengal State Cooperative Bank Ltd. v. Joint C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further submitted that the decision of the Calcutta High Court in the case of West Bengal State Co-operative Bank Ltd. [2004] 267 ITR 345 relied upon by learned counsel for the petitioner, has been dissented from by the Bombay High Court in the aforesaid case of Atlas Copco (India) Ltd. [2006] 283 ITR 56 and it has followed the decision of this court in the case of Jhunjhunwala Vanaspati Ltd. [2004] 266 ITR 657. We have given our anxious consideration to the various pleas raised by learned counsel for the parties. It is not in dispute that assessment proceedings in the assessment year 2003-04 had commenced with the issuance of the notice under section 142(1) of the Act on October 25, 2005. The petitioner was required to furnish details ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent case, respondent No.3, the assessing authority was satisfied that the petitioner's accounts are complex in nature, voluminous and in the interests of the Revenue and only after forming such opinion had proposed for statutory audit. Voluminous nature was only one of the factors recorded by him. In fact, the requirement of section 142(2A) of the Act had been fulfilled in the present case. This court in the case of Jhunjhunwala Vanaspati Ltd. [2004] 266 ITR 657 has held that: "A bare perusal of sub-section (2A) of section 142 of the Income-tax Act, 1961, shows that all that is required therein is that the Assessing Officer should be of the opinion that in view of the nature and complexity of the accounts of the assessee and the interest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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