Department is not bound to accept the request of the assessee to issue summons u/s 131 to third party for verification of certain transactions

In the a recent case (2009 -TMI - 33591 - DELHI HIGH COURT), honorable High Court of Delhi has observed that;

-      The responsibility for maintaining proper accounts rests exclusively with the petitioner.

-      This is not a case where the petitioner had either filed confirmation or made available the books of accounts maintained by St. Kabir Modern School and Holy Convent Senior Secondary School.

-      It is the petitioner's case that these books of accounts must be summoned by the Department.

-      This would indeed be a very dangerous precedent fraught with possibilities of harassment at the behest of the assessee, if, without any foundation the Department insists on a third party to produce its books of accounts.

-      It is this aspect of the case which has persuaded us not to exercise the extraordinary powers vested in us under Article 226 of the Constitution. Whether or not there has been an infraction of the Affiliation Bye-laws is altogether a different point.

(For full text of judgment - visit: 2009 -TMI - 33591 - DELHI HIGH COURT)