2004 (4) TMI 42

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....Indore, was justified in invoking the powers conferred under section 142(2A) of the Income-tax Act, 1961, for getting the accounts of the assessee, i.e., the petitioner, audited from an accountant as defined in the Explanation below sub-section (2) of section 288? In other words, the short question that arises for consideration is, whether in the facts of this case, a direction to get the accounts audited from an accountant was called for? If the contention of the petitioner is that it was not called for because none of the conditions specified in section 142(2A) ibid were present in this case so as to entitle the AO (the Assessing Officer) to invoke section 142(2A), the case of the Revenue on the other hand, is that no case for interferenc....

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....t the accounts audited from an accountant named therein. It was found that the order to get the audit done is called for looking to the nature of complexity of the accounts and in the interest of the Revenue. As stated supra, it is this order which is impugned in this writ by contending that no case for issuance of such direction was called for. Notice of the writ was issued to the Revenue (Income-tax Department). The Department has submitted the return and has justified passing of the impugned order on the facts on record. Heard Shri G.M. Chafekar, learned senior counsel with Shri Sarda, Shri M.M. Asudani and Shri P.M. Choudhary, learned counsel for the petitioners, and Shri A.P. Patankar, learned counsel for the respondents. In subs....

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....ly did not reflect in the regular books of account maintained by the petitioner. It was also noticed that even the books of account maintained had several evasions, alterations and corrections. It is with this background if the authority feels that the books of account are complex in nature and need to be scrutinized by another chartered accountant then in my view, no fault can be found in such approach. It is a case where one can easily conclude that formation of opinion is based on relevant material on record. In other words, it is a case where the Assessing Officer had before him adequate material to form an opinion needed for giving direction to get an audit done. Obviously, it is in the interest of the Revenue because if it is found....

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....i by the petitioners and that none of them are reflected in the books of account and that the books of account maintained by the petitioner contains several discrepancies, erasions and overwritings, etc., then certainly such accounts are not dependable for determining the exact tax liability. Indeed, the application of mind by the authority is also discernible when one peruses the impugned q order. They need to be reaudited in accordance with law. In such circumstances, the authority's only option is to take recourse to the provisions of section 142(2A) ibid and issue necessary directions. It is not for the court to again examine whether accounts in question are complex, or not, because, the writ court does not act as an appellate court ....