9911796707
|
Home
Issues involved:
The judgment involves the legality of notices issued u/s 133(6) of the Income-tax Act, 1961, seeking information from a bank regarding repayment of loans and term depositors' details for widening the tax base and unearthing black money. Relevant Details: The respondents issued notices to the appellant bank under section 133(6) of the Act, requesting information on loans repayment and term depositors' details. The learned single judge upheld the notices based on previous court decisions. The appellant argued that the notices were not issued correctly and that specific requirements were not met. The Income-tax Department contended that the notices were lawful and necessary for tax evasion prevention. The court examined the power of authorities to seek information u/s 133(6) and the requirement of prior approval for such requests. The court analyzed the provisions of section 133(6) and the amendments made in 1995, emphasizing the need for prior approval for information requests in the absence of pending proceedings. The court clarified that the term "enquiry" includes collecting information before initiating formal proceedings. The appellant's argument that a pending enquiry is necessary was deemed invalid, as prior approval from the Commissioner suffices for collecting information. The court affirmed the validity of the notices issued by the respondents under section 133(6) as they obtained prior approval as mandated by the Act. In conclusion, the court dismissed the writ appeals, stating that the notices were lawfully issued u/s 133(6) and there was no error in the learned single judge's decision. The judgment aligned with previous court rulings on the matter, emphasizing the importance of prior approval for seeking information under the Income-tax Act.
|
