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sec 133 (6)

CA Ankit Bhutoria (CA ) (372 Points)

16 April 2010

can an AO ask info of a Assessee from assessee in a notice under section 133 (6). if yes why if no why?

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4 Replies

Amit Ingale (Student CA Final) (1454 Points)
Replied 16 April 2010

Section 133 (6) Reads as follows

133(6) require any person, including a banking company or any officer thereof, to furnish information in relation to such points or matters, or to furnish statements of accounts and affairs verified in the manner specified by the ⁷²[Assessing] Officer, the ⁷³[Deputy Commissioner (Appeals)] ⁷⁴[, the ⁷⁵[Joint Commissioner] or the Commissioner (Appeals)], giving information in relation to such points or matters as, in the opinion of the ⁷⁶[Assessing] Officer, the ⁷⁷[Deputy Commissioner (Appeals)] ⁷⁴[, the ⁷⁵[Joint Commissioner] or the Commissioner (Appeals)], will be useful for, or relevant to, any ⁷⁸[enquiry⁷⁹or] proceeding⁷⁹ under this Act :

⁸⁰[Provided that the powers referred to in clause (6), may also be exercised by the Director-General, the Chief Commissioner, the Director and the Commissioner :]

⁸¹[Provided further that the power in respect of an inquiry, in a case where no proceeding is pending, shall not be exercised by any income-tax authority below the rank of Director or Commissioner without the prior approval of the Director or, as the case may be, the Commissioner.]

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Amir (Learner) (4016 Points)
Replied 16 April 2010

Dear Ankit,

If AO wants information regarding asseseee from asseseee only then he can use notice u/s 142(1)....

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 16 April 2010

Yes i agree with Amir. Section 133(6) states

¹⁴[Provided further that the power in respect of an inquiry, in a case where no proceeding is pending, shall not be exercised by any income-tax authority below the rank of Director or Commissioner without the prior approval of the Director or, as the case may be, the Commissioner.]

So it should have been issued u/s 142(1). Otherwise it could be issued in connection with enquiry in case of matter of some other person.

Amit Ingale (Student CA Final) (1454 Points)
Replied 16 April 2010

NO !!!!!!!!!!! Friends

Its not that , AO can not call infomrtaion from assess vide section 133.

Jus read the whole section 133 , which reads as follows :-

Power to call for information.

⁶⁶133. The ⁶⁷[Assessing] Officer, the ⁶⁸[Deputy Commissioner (Appeals),] ⁶⁹[the ⁷⁰[Joint Commissioner] or the Commissioner (Appeals)] may, for the purposes of this Act,—

(1) require any firm to furnish him with a return of the names and addresses of the partners of the firm and their respective shares ;

(2) require any Hindu undivided family to furnish him with a return of the names and addresses of the manager and the members of the family ;

(3) require any person whom he has reason to believe to be a trustee, guardian or agent, to furnish him with a return of the names of the persons for or of whom he is trustee, guardian or agent, and of their addresses ;

(4) require any assessee to furnish a statement of the names and addresses of all persons to whom he has paid in any previous year rent, interest, commission, royalty or brokerage, or any annuity, not being any annuity taxable under the head “Salaries” amounting to more than ⁷¹[one thousand rupees, or such higher amount as may be prescribed], together with particulars of all such payments made ;

(5) require any dealer, broker or agent or any person concerned in the management of a stock or commodity exchange to furnish a statement of the names and addresses of all persons to whom he or the exchange has paid any sum in connection with the transfer, whether by way of sale, exchange or otherwise, of assets, or on whose behalf or from whom he or the exchange has received any such sum, together with particulars of all such payments and receipts ;

(6) require any person, including a banking company or any officer thereof, to furnish information in relation to such points or matters, or to furnish statements of accounts and affairs verified in the manner specified by the ⁷²[Assessing] Officer, the ⁷³[Deputy Commissioner (Appeals)] ⁷⁴[, the ⁷⁵[Joint Commissioner] or the Commissioner (Appeals)], giving information in relation to such points or matters as, in the opinion of the ⁷⁶[Assessing] Officer, the ⁷⁷[Deputy Commissioner (Appeals)] ⁷⁴[, the ⁷⁵[Joint Commissioner] or the Commissioner (Appeals)], will be useful for, or relevant to, any ⁷⁸[enquiry⁷⁹or] proceeding⁷⁹ under this Act :

⁸⁰[Provided that the powers referred to in clause (6), may also be exercised by the Director-General, the Chief Commissioner, the Director and the Commissioner :]

If you read carefully then you will realise that , AO has powers to "call for information" directly from the assessee. So, it not to say that AO should have only used section 142(1).

he has power U/s 133(4) as well as 133(6). Jus read the sction and notice the words in red.

The wordings in section 133(6) are "Any person", so the any person wll also include Assess himself.

And it is not necessory that , there should be pending assessement, he can do with prior approval of commissioner , if there are no pending assessemnts ...

YOu will need look and analyse the two things , 1) what is mentioned in the order 2) check if whether assessment is pending , if if pending , then confirm the prior approval of CIT.

OK ??

for anything Revert back.

Thanks

Amit Ingale.

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