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TMI Blog2009 (6) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Income Tax, Jammu and Kashmir, Jammu. Before passing aforementioned order, the Assistant Commissioner had issued a show cause notice to the Petitioner-Authority, inter alia, indicating that on the Asset side of the Balance Sheet of the petitioner-Authority, it had been shown that the work in respect of Division nos-1 and 2 amounting to Rs.65,03,39,219/- was in progress, but neither the nature of the Asset had been explained nor had it been shown as to how this asset had been brought up. The sources of the funds utilized for the construction of the asset, too, had not been disclosed by the Authority. The notice further indicated that on the asset side of the Balance Sheet, the Petitioner-Authority had shown total Fixed Asset of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mplete, complex and unreliable disabling determination of the true and correct income of the Petitioner-Authority, which warranted Special Audit of the Authority's accounts by a Chartered Accountant as defined in explanation below Sub Section 2 of Section 288 of the Income Tax Act. The Jammu Development Authority filed its response to the show cause notice on 22.12.2008 which having not been accepted, resulted in issuance of order dated 26.12.2008 by the Assistant Commissioner of Income Tax, Jammu, aggrieved whereby the Petitioner-Authority has approached this Court by this writ petition seeking quashing of the Assistant Commissioner's order. It is, inter alia, pleaded by the Petitioner-Authority that the Assistant Commissioner has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case and Authority's objections to the action proposed under section 142 (2A) of the Income Tax Act, 1961, has been criticized as subjective, whereas, as contemplated by law, it was required to be objective. Appearing for the Revenue, Mr. D.S.Thakur, produced the records indicating as to how the Commissioner of Income Tax, Jammu and Kashmir, Jammu, and Assistant Commissioner of Income Tax, had considered the case and objections filed by the Petitioner-Authority to the show cause notice, before directing Special Audit of the Petitioner-Authority's accounts. Learned counsel submitted that the respondents' had, on finding the Petitioner-Authority's accounts incomplete, complex and unreliable, taken objective and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f income as per the accounting standards, prescribed by the Institution of Chartered Accountants of India, had remained unanswered by the Petitioner-Authority in its response to the show cause notice. After going through the records of the respondents, I do not find any merit in petitioner's counsel's contention that the respondent had not considered Authority's response to the show cause notice and had hurriedly issued the order directing the Special Audit. Both the officers of Income Tax Department have, taken an objective decision as warranted under law after considering petitioner's response to the show cause notice. Petitioner has not placed any material on records, on the basis whereof the decision taken by the respondents may be f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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