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II. Direct Tax Case laws:
1. Delhi Development Authority Vs. Union of India, W.P.(C) Nos. 19746 of 2005, Date: 10.09.2012, High Court of Delhi
Whether
AO can order for audit u/s 142(2A) on the basis on notes to accounts
without in-depth examination of entries in the books of accounts?
The
assessee a statutory body, Delhi Development Authority has filed a writ
petition against an direction passed by the AO regarding conducting a
special audit u/s 142(2A). The assessee contended that AO relied upon
the Notes of Accounts for ordering the audit u/s 142(2A). The AO has
passed the direction without applying mind and his reasons are vague.
Hon’ble High Court of Delhi held the case in favour of assessee &
quashed the direction of AO. The HC held that it may be true and
correct that certain aspects mentioned in the Notes of Accounts may, if
required and necessary and after in depth examination (of entries in the
books), justify appointment of a special auditor. But, relying merely
on Notes to accounts do not forms the basis for special audit.
(Please click here for judgment)
2. Dr. P.G. Viswanathan Vs. Director of Income-tax
(Investigation), Writ Petition Nos. 20073 & 20074 of 2003,
Date:04.01.2013 , High Court of Madras
Should
court restrict the search & seizure operation in case of allegation
of tax evasion, by placing undue emphasis on hyper technical plea put
forth by assessee regarding procedural formalities in issuance of search
warrants?
The
assessee is a doctor employed in hospital owned by his wife. The income
tax authorities get information that assessee has secreted some of the
information for evading income tax. On initiating a search & seizure
operation on the premises of hospital & his residence authorities
seized number of documents, cash & jewelry.
Immediately,
the assessee filed a writ petition that authorities didn’t have the
material information before initiating the operation so, they didn’t
fulfill the mandatory requirement of section 132 & the operation is
void & illegal. The respondent authorities contended that seizure
was conducted on the basis of information gathered from pre search
enquiries & income tax records. And also, that there are several
ways for the assessee to prove that seizure is void, so filing of writ
petition is pre-mature in nature so it should be dismissed.
(Please click here for judgment)
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