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Nri summons

prasad (government employee) (225 Points)

15 March 2017

can the ITO can issue summons u/s.131 to NRIs

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(Guest)

Section 131 of the Income Tax Act empowers the income tax authorities to conduct inquiries. It provides powers to summon persons / witnesses, examine them under oath, compel production of books of account and documents, and issue commissions.

depend upon the situvation

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(Guest)

In practice more or less in every survey, the assessing officers issues notice u/s 131 during course of survey. The purpose of issuing notice is this that they want to call the assessee after the survey is over but they cannot do so because no proceeding remain pending after survey is concluded and hence as a matter of practice they issue notice u/s 131 during course of survey. There are number of court decisions which say that notice u/s 131 during course of survey should not be issued by the Income Tax authority unless the assessee cooperates to the survey team.

Notice u/s 131 is a very vital notice and the notice as well as the Income Tax authorities should be well aware of its scope, power, misuse and consequences. The Income Tax authority may use this section as a weapon in their hands but at the same time the various courts has also imposed certain limitations on it.

The noticee should always comply the notice u/s 131 properly and carefully and at the same time the Income Tax authority should not issue notice u/s 131 in every case

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(Guest)

https://www.incometaxparaskochar.com/Image/Section%20131%20of%20the%20Income%20Tax%20Act.pdf

prasad (government employee) (225 Points)
Replied 20 March 2017

thank you for the reply and you have not clearly mentioned whether 131 summons can be issued to NRI. I think If NRI includes in the list of person as defined in Income tax act, there is no.