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TMI Blog2018 (10) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... dings, are already referred to in the PWC report as also the pending proceedings under Section 148 of the I. T. Act. There is a return of income filed under protest by the Petitioners on 26th April, 2017 and that is under assessment. If during the course of assessment and pursuant to this return, the Petitioner desires to raise objections with regard to the contents of the PWC report and to be relied upon by the Assessing Officer, then, the Assessing Officer shall allow the Petitioner to raise the necessary contentions and after dealing with them, he shall pass an order in accordance with law. - WRIT PETITION NO. 143 OF 2018 WITH WRIT PETITION NO.161 OF 2018 WITH WRIT PETITION NO. 149 OF 2018 - - - Dated:- 1-10-2018 - S. C. DHARMADHIKARI B. P. COLABAWALLA, JJ. Mr. R. S. Padvekar, Mr. Mandar Vaidya, Tanzil Padvekar I/b Dave and Padvekar Associates, for the Petitioner. Mr. Nirmal Chandra Mohanty, for Respondent Nos.1 and 2. ORAL JUDGMENT:(PER S. C. DHARMADHIKARI, J.) These Petitions under Article 226 of the Constitution of India raise common questions of fact and law. They were heard together and are disposed off by a common order. 2 In Writ Petition No. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard.] 6 Annexure-A to the Petition is a copy of the notice issued under the above reproduced provision. It is claimed that this Assessing Officer acting on the directions of Respondent No.2 has referred the matter to the special audit by a Chartered Accountant for getting the Petitioner's accounts audited. Annexure-B is a copy of the letter dated 16th October, 2017. 7 It is Respondent No.2 who is the supervisory and administrative authority and his approval has to be obtained before the proposal of the special audit moved by the Deputy Commissioner - Respondent No.1 is implemented and carried into effect. By Annexure-C dated 15th September, 2017, the approval has been granted. 8 It is this approval, which is challenged in this Writ Petition on several grounds. 9 We have found that the Petitioner relies upon the factual position as narrated in paragraphs 5 and 6. It is claimed that the return of the income for the Assessment Year 2010-2011 after its filing was subjected to an audit as per the provisions of the Companies Act, 1956 and also under Section 44AB of the I. T. Act. 10 It is claimed that the return was selected for scrutiny and assessment was completed u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et Commission to conduct the Special Audit on the points of reference vide letter dated 4th December, 2013. The PWC furnished the Special Audit Report to the Chairman, Forward Market Commission, Mumbai, on 21st April, 2014. Annexure-K is the copy of the Special Audit Report dated 21st April, 2014. The Petitioner further states that the Forward Market Commission, while ordering the Special Audit, was mainly concerned with National Spot Exchange Ltd. and Financial Technologies (India) Ltd., as Financial Technologies (India) Ltd. was the promoter and holding company of the National Spot Exchange Ltd. At the same time Financial Technologies (India) Ltd. was also the promoter of the Petitioner Company. It is submitted that the promoter of Financial Technologies (India) Ltd. and National Spot Exchange Ltd. was one Mr Jignesh Shah who was also Managing Director and then Vice-Chairman of the Petitioner's Company. The Petitioner says that as per the Special Audit Report the persons associated with Financial Technologies (India) Ltd. and some erstwhile Key Management Personnel and officers of the Petitioner were acting at the behest of the FT Group had conspired to commit a large sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isappropriation of money committed by Key Management Personnel, officers and Employees of the company and specified entities on the basis of the observations in the special Audit Report by PWC. Accordingly, as per the direction of the Forward Market Commission, Criminal Complaints were filed to the Additional Commissioner of Police (EOW), Mumbai against sixteen (16) Companies/Entities who were allegedly involved in the financial scam in connivance with the Key Management Personnel, Officers and the Employees of the Petitioner. 12 In paragraph no. 14, the Petitioner says that on the basis of the special audit report of the PWC, Respondent No.1 issued notice under Section 148 of the I. T. Act dated 30th March, 2017 and in pursuance of that notice, a return was filed under protest on 26th April, 2017 declaring total income of ₹ 296,05,13,703/-. Annexure-N is a copy of this return of income. 13 Within two days of filing of this return, the impugned notice has been issued and equally the approval obtained. 14 We have heard both sides in great details on this Petition. With their assistance, we have perused the Petition and the Annexures thereto. 15 It is common grou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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