TMI Blog1986 (11) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... gainst the AAC's order. The relevant provisions of the Act which come up for consideration as far as they are relevant for us are the following : " (1) The Income-tax Officer, Appellate Assistant Commissioner, Inspecting Assistant Commissioner, Commissioner (Appeals) and Commissioner shall, for the purposes of this Act, have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908), when trying a suit in respect of the following matters, namely :--- (a) discovery and inspection ; (b) (c) compelling the production of books of account and other documents ; (2) Without prejudice to the provisions of any other law for the time being in force, where a person to whom a summons is issued either to atten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer considers it necessary or expedient to verify the correctness and completeness of the return by requiring the presence of the assessee or the production of evidence in this behalf, the Income-tax Officer shall serve on the assessee a notice requiring him, on a date to be therein specified, either to attend at the Income-tax Officer's office or to produce, or to cause to be there produced, any evidence on which the assessee may rely in support of the return :" 3. It is the contention of the assessee in this appeal that unless the ITO exhausts the powers vested with him either under section 142(1) or under section 143(2) he cannot exercise the powers under section 131(1) and (2). It is the further contention of the assessee that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel for the assessee, contested the jurisdiction of the ITO to invoke the powers under section 131 and according to him there are certain pre-conditions to invoke the same and there are certain other powers to be exhausted before invoking the same. On the other hand, the learned departmental representative contended that the ITO has got even the right to issue notice under section 131 the only condition being that the said notice should be issued only for the purpose of the Act. In this case section 131 notice dated 9-11-1983 was issued purposely to produce the account books relevant for the assessment year 1982-83 along with bank statements and sales tax assessment order on 14-11-1983. The assessee, who is a registered firm, filed its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake it clear that the only pre-condition before issuing notice under section 131 is that the production of document should be for the purposes of the Act and apart from this pre-condition the power of the ITO to issue notice under section 131 is in no way fettered by any other conditions. The argument that the powers under section 142(1) and 142(2) should be exhausted before invoking the powers under section 131 to our minds, is neither warranted by a reading of the section nor appeared to be essential under law. In view of all the above we reject the preliminary contention of Shri Rathi, the learned counsel for the assessee. 5. However, on merits, we do not find sufficient ground to sustain the fine. We have already seen that powers were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to them. We agree that the assessee should get seven clear days from the date of the service of the notice and for this purpose we have already suggested that the Income-tax Officer should himself make out of a fortnightly or a weekly list of cases and send it to the office besides exhibiting such a list on the Notice Board. If in any case, the assessee fails to comply with the notice for the reason that seven clear days were not available to him from the date of the service of the notice, the assessee should not be liable to any proceeding for such default, such as completion of assessment under section 144 or penalty under section 271." On 16-11-1983 the ITO issued notice under section 139(2) to produce or to cause to be produced accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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