GURUNANAK ENTERPRISES Vs. COMMISIONER PF INCOME TAX

JUDGEMENT

(1.) Two orders, both dated 27th August, 2001, passed by the Deputy Commissioner of Income-Tax Circle 17(1), New Delhi, under Section 142(2A) of the Income-tax Act, 1961 (for short the Act) ordering special audit of the accounts of the petitioners are under challenge in these two writ petitions.

(2.) Since the orders are in identical terms, passed in the cases of two group concerns, for the sake of convenience, both the petitions are being disposed of by this common judgment. However, we shall treat the facts of CWP No. 7883/01 as illustrative.

(3.) The petitioner, a proprietary concern, is the sole selling agent for and on behalf of an organising agent authorised by the State Government to conduct the lottery business. It sells lottery tickets on consignment basis to the stockists in different States of India. Assessments for the assessment years 1995-96 to 1998-99 were completed under Section 143(3) of the Act. From January, 1997 to December, 1999, residential and business premises of the proprietor of the petitioner were subjected to search and seizure proceedings on four different occasions and as a consequence thereof, assessments for different block periods were completed on different dates. According to the petitioner no addition on account of business activities/transaction was made in any of the earlier block assessments and in fact the alleged undisclosed income assessed vide orders dated 26 February, 1999 and 29 September, 2000 were only on account of alleged suppression of correct sale consideration of agricultural lands, investments in jewellery and travelling expenses incurred on foreign visits. In other words, no trading addition was made.