Punjab Urban Development Authority (Puda v. Commissioner Of Income Tax-I & Another

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH. C.W.P. No.4204 of 2003 (O&M)Date of decision: 5.2.2010 Punjab Urban Development Authority (PUDA). -----Petitioner. Vs. Commissioner of Income Tax-I & another. -----Respondents CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOELHON'BLE MR. JUSTICE ALOK SINGH Present:-Mr. Rajesh Garg, Advocate for the petitioner.for the petitioner. Ms. Urvashi Dhugga, Standing Counsel for the revenue. --- ORDER: 1. This petition seeks quashing of order dated8.10.2002, Annexure P-3, whereby special audit of accounts ofthe petitioner/assessee has been ordered under Section 142(2A)of the Income Tax Act, 1961 (for short, “the Act”). 2. The assessee is a statutory body and filed its return claiming exemption under Section 10(20A) of the Act. TheAssessing Officer passed the impugned order on the ground thataccounts being complex, special audit was required. 3. Contention raised on behalf of the petitioner is that nohearing was given to it before the impugned order was passed which was necessary. Condition precedent for passing orderunder Section 142(2A) of the Act does not exist inasmuch as theaccounts are not complex. Opinion of the Assessing officer is notbased on objective data as required. Other requirements forexercise of the power have not been complied with. Reliance hasbeen placed on judgment of the Hon’ble Supreme Court inSahara India (Firm)v. Commissioner of Income Tax andanother[2008] 300 ITR 403. 4. Learned counsel for the revenue fairly states thatsince judgment of the Hon’ble Supreme Court has been deliveredafter filing of this petition, the revenue has no objection to a freshorder being passed in accordance with law. 5. In view of above statement, this petition is disposedof. A fresh order may be passed in accordance with law, ifwarranted, within three months from the date of receipt of a copyof this order. 6. The petition is disposed of. (ADARSH KUMAR GOEL) JUDGE February 05, 2010ashwani ( ALOK SINGH ) JUDGE