U/s Notice 142(2)

yes the AO can ask for B/S and P/L and can also ask for the auditors report to verify whether disclosure of the same has been make..

You have to see the to whom the notice is addressed ......if addressed to firm , firm can make a polite reply that they can not produce BS of other company .....but this may not be of any use becase AO can always issue notice to the director . Moreover depending on the facts of the case , production of BS may be use ful for you to discharge your burden of proving some fact