2000 (1) TMI 18

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....tution of India, the petitioner challenges the communication dated December 4, 1996, by the Assistant Commissioner of Income-tax to the assessee communicating the observation of the Commissioner, i.e., "I agree with the view of the Deputy Commissioner that special audit under section 142(2A) be done". Counter and rejoinder affidavits have been exchanged and we have heard Sri R. S. Agarwal, lear....

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....ting the special audit done under the provisions of section 142(2A) of the Income-tax Act, 1961, be reconsidered. In pursuance of this court's order dated August 8, 1996, the Assessing Officer reconsidered the matter and through a letter dated October 8, 1996, he sought the approval of the Commissioner to withdraw the order of audit because he was of the opinion that since the statutory auditors h....

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....sed to the managing director, U. P. Handloom Corporation, pointing out that the closing balances of the assessment year 1982-83 cannot be reconciled with the opening balance of the assessment year 1983-84. Keeping in view, the entire facts and circumstances of the case, I am of the opinion that an audit under section 142(2A) should be conducted. Submitted for kind consideration of the Commis....

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....d officers have to assist the auditors who have to dig out the old records for the purpose. Further, in terms of section 142(2D) the expenses of the audit have to be borne by the assessee. Therefore, the audit is likely to place substantial financial burden on the assessee. The Deputy Commissioner has merely referred to a letter of Sri Pradeep Seth, Chartered Accountant. The date of that letter ha....