2010 (2) TMI 20

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.... of India, seeks setting aside and quashing of the order dated 7th March, 2006, passed by the Chief Commissioner of Income Tax under Sections 234A, 234B and 234C of the Income Tax Act, 1961 (hereinafter referred to as „the Act‟), being violative of the circular of the Central Board of Direct Taxes (in short „the Board‟) dated 23rd May, 1996. 2. The brief facts as are necessary for the adjudication of the present petition are that: (a) A raid was conducted on the Petitioner-company by the Central Bureau of Investigation (CBI) on 1st April, 2001 and 3rd April, 2001. The CBI froze the bank account of the Petitioner-company on 8th April, 2001 and also seized the books of accounts and other documents of the company.....

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.... returns in time for assessment years 2001-02 and 2002-03. It is, therefore, argued that the impugned order is erroneous in coming to a conclusion that the account books were available with the Petitioner who did not file the same.  4. Per contra, the Department supported the impugned order and filed a counter affidavit. 5. In the present case it is noticed that the Petitioner relies on the said notification dated 23rd May, 1996 issued by the Board which, inter alia, provides as follows: "2. The class of incomes or class of cases in which the reduction or waiver of interest under section 234A or Section 234B or as the case may be, section 234C can be considered, are as follows:  (a) Where during the course of proceedin....

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....and 9th October, 2002 respectively. However, the Petitioner filed the income tax returns for the said assessment years and deposited the income tax therefor, only on 31st March, 2003. In this behalf it is seen that a tax audit report is mandatorily prepared by an independent auditor based on the documents and accounts produced by the assessee, and as such it would not have been possible for the Petitioner to file the tax audit reports on 31st October, 2010 and 29th October, 2002, without submitting the necessary documents for verification by the independent auditor, who issued the tax audit reports. Therefore, unless the books of accounts or relevant details thereof maintained by the assessee were produced for the examination of the tax aud....