TMI Blog2015 (2) TMI 819X X X X Extracts X X X X X X X X Extracts X X X X ..... nce) of the above three places. Letter dated September 2, 2013, is issued by the Director of Income-tax (Intelligence) to the above Income-tax Officers (Intelligence) authorising them to issue notices to co-operative banks/urban co-operative banks/credit co-operative societies coming under the respective jurisdiction calling for information as contemplated under section 133(6) of the Income-tax Act. By virtue of these documents, the Income-tax Officer (Intelligence) is the authorised person who could issue exhibit P1, therefore After referring to section 133(6) of the Act, prior to the introduction of the second proviso and its effect and after the introduction of the second proviso to section 133(6), their Lordships opined that there was no scope for interfering with validity of notices. In the light of the dictum laid down in Karnataka Bank Ltd. v. Secretary, Government of India [2002 (2) TMI 1285 - SUPREME COURT] there is no much scope for considering the arguments of the learned counsel appearing for the appellants, according to whom, Kathiroor Co-operative Bank's case [2013 (11) TMI 728 - SUPREME COURT] has no application. Also it clearly indicate what exactly sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tors is not only a laborious task but encroaching on the affairs and business activities of co-operative societies. Exhibit P1 notice lacks details as to for what purpose such notice was issued and it is issued by the authority which is not included in section 133(6) of the Income-tax Act. 3. According to appellants, the State Legislatures have been given exclusive power to make laws in respect of matters enumerated in List II of the Seventh Schedule of the Constitution of India. Entry No. 43 of List I of the Seventh Schedule refers to incorporation, regulation and winding up of trading corporations, including banking, insurance and financial corporations but does not include co-operative societies. Entry No. 32 of List II specifically relates to societies, co-operative societies, etc., other than those specified in List I. Therefore, according to the appellants, as co-operative societies are established pursuant to the promulgation of the Kerala Co- operative Societies Act and Rules, only State Government has control over the affairs and management of co-operative societies, hence, they have no obligation to furnish the details sought at exhibit P1. They further contend that in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ritorial areas coming under their jurisdiction. As per this notification, according to the learned standing counsel, the Director of Income-tax (Intelligence), Kochi, has powers to issue such directions to all co-operative societies within the State of Kerala so far as all powers conferred under the Income-tax Act in relation to collection, collation, verification and dissemination of information in respect of territorial area. Order dated November 1, 2011, is issued by the Office of the Director of Income-tax (Intelligence), Kochi, giving details of Income-tax authorities who could function as against the posts referred to in column (3) of the table given in the said letter. Letter dated September 2, 2013, clearly indicates such power being vested on the Income-tax Officer (Intelligence), Kochi, Thrissur, Alappuzha, Kozhikode and Thiruvananthapuram. According to the learned standing counsel, Kathiroor Service Co-operative Bank's case (supra) is clear enough in indicating the powers to call for information in the absence of any proceedings. With these submissions, prays for dismissal of the appeals. 6. Coming to the first issue whether the authority which signed exhibit P1 h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial issue whether general notice calling for cash particulars including deposits above a particular amount issued by the concerned officer with the prior approval of the officer concerned, as the case may be, their Lordships opined that all the notices were issued by the same authority which obviously mean that there was prior approval from the Commissioner or Director, as the case may be. 9. Section 133(6) and provisos read as under : 133. Power to call for information.-The Assessing Officer, the Deputy Commissioner (Appeals), the Joint Commissioner or the Commissioner (Appeals) may, for the purposes of this Act,-. . . (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 Assessing Officer, the Deputy Commissioner (Appeals), the Joint Commissioner or the Commissioner (Appeals), giving information in relation to such points or matters as, in the opinion of the Assessing Officer, the Deputy Commissioner (Appeals), the Joint Commissioner or the Commissioner (Appeals), will be useful for, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case where no proceeding is pending, only with the prior approval of the Director or the Commissioner. They also referred to Karnataka Bank Ltd. v. Secretary, Government of India [2002] 255 ITR 508 (SC) at paragraph 13 of the judgment, which reads as under (page 253 of 360 ITR) : Keeping in view the aforesaid, we would now refer to the contentions of the learned counsel for the parties. It is the case of the assessee that though this court in Karnataka Bank's case (supra) has considered the powers of the respondent-authorities to issue notice under section 133(6) but has not considered as to whether the said provision clothes the respondent-authorities with any power for con ducting a roving or fishing enquiry into the affairs of the assessee or regarding the deposits made by its customers. Further, that this court has considered only 'case specific' or 'area specific' information sought under section 133(6). Learned counsel for the assessee would, therefore, submit that the High Court has erred by not appreciating the decision of this court in Karnataka Bank's case (supra) and erroneously dismissed the case of similarly placed banks. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ack's Law Dictionary, 9th Ed., 2009, page 864, defines 'enquiry' as 'a request for information, either procedural or substan tive'. The expression inquiry under Encyclopedia Law Lexicon, Vol. 4, Ashoka Law House, 2008/09, page 2356 and K. J. Aiyar's Judicial Dictionary, Vol. 1, Lexis Nexis Butterworths Wadhwa, 15th Edition, 2011, page 838 follows the explanation hereunder : According to the New Standards Dictionary, the word inquiry includes investigation into facts, causes effects and relations generally ; to inquire , according to the same dictionary means to exert oneself to discover something . Chambers 20th Century Dictionary lays down that the meaning of the term to inquire is to ask, to seek and the meaning of the term inquiry is to give as : 'in search for knowledge ; investigation ; a question' (Also Real Value Appliances Ltd. v. Canara Bank [1998] 5 SCC 554 ; [1998] 93 Comp Cas 26 (SC)).' Ultimately, their Lordships at concluding paragraphs 17, 18 and 19 opined that powers under section 133(6) are in the nature of survey and a general enquiry to identify persons who are likely to have taxable income and whet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is clear from the mere reading of the said provision that it is not necessary that any inquiry should have commenced with the issuance of notice or otherwise before section 133(6) could have been invoked. It is with the view to collect information that power is given under section 133(6) to issue notice, inter alia, requiring a banking company to furnish information in respect of such points or matters as may be useful or relevant. The second proviso makes it clear that such information can be sought for even when no proceeding under the Act is pending, the only safeguard being that before this power can be invoked the approval of the Director or the Commissioner, as the case may be, has to be obtained.' In view of the aforesaid, we are of the view that the powers under section 133(6) are in the nature of survey and a general enquiry to identify persons who are likely to have taxable income and whether they are in compliance with the provisions of the Act. It would not fall under the restricted domains of being 'area specific' or 'case specific'. Section 133(6) does not refer to any enquiry about any particular per son or assessee, but pertains to informatio ..... 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