VLS FINANCE LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) A writ petition under Article 226 of the Constitution has been filed by two companies sharing the same address. Though from the record it is not very explicit, but it appears that the Directors in both the companies are common.

(2.) Initially, the writ petition was filed primarily challenging an order dated 29th June, 2000 issued by Respondent No.2 directing that a special audit be conducted in respect of the Petitioners under Section 142 (2A) of the Income Tax Act, 1961 (the Act) by M/s. Khanna and Anandam and Co., Chartered Accountants. A challenge was also made to an order dated 10th August, 2000 which clarified that the special audit in respect of Petitioner No.1 covers the period from the assessment year 1994-95 to assessment year 1998-99 and in respect of Petitioner No.2 it covers the period from the assessment year 1994-95 to assessment year 1996-97.

(3.) Subsequently, the Petitioners sought to amend the writ petition by including a prayer challenging a notice dated 28th August, 2000 issued under Section 143 (2) of the Act. That amendment application (CM No.10173/2000) has not yet been allowed although the writ petition was admitted for final hearing. We now allow the amendment application and dispense with the filing of a formal amended writ petition.