TMI Blog1989 (5) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Officer, 'H' Ward, Companies, District IV, Calcutta. The only point which calls for determination in this appeal is whether the Income-tax Officer was justified in issuing a notice under section 131 of the Income-tax Act. So far as the notice under section 133(6) of the said Act is concerned inasmuch as the said notice was addressed to the Grindlays Bank Ltd.'s principal officer in a separate proceeding the bank challenged the said notice. The rule in the said writ proceeding was made absolute in favour of the bank. No appeal had been preferred therefrom by the Income-tax Department. Under the circumstances, the learned trial court was only concerned with the notice that was served upon one O'Gorman. From the said notice, it appears th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ically provided that 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, when trying a suit in respect of the following matters; namely: (a) discovery and inspection; (b) enforcing the attendance of any person, including any officer of a banking company and examining him on oath; (c) compelling the production of books of account and other documents ; and (d) issuing commissions. From a plain reading of the said section, it appears that the persons mentioned in the sub-section are vested with powers of a court as provided under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view of the fact when no proceeding was pending for the assessment year 1969-70, the Income-tax Officer could not exercise his power under section 131(1) and call for documents in respect of entertainment allowance. In the case of Dwijendra Lal Brahmachari v. New Central jute Mills Co. Ltd. [1978] 112 ITR 568, a Division Bench of this High Court while considering the power of an Income-tax Officer to compel production of documents, and the scope of such power it was observed by the learned judges of the Division Bench that the Officer concerned should apply his mind about the necessity of production of the documents and if the Officer did not apply his mind while issuing such notice, then the validity of such notice under section 131 could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... naked that the section itself would become ultra vires. Application of mind must be in regard to the question of relevancy of the documents to the lis involved in the matter before the Income-tax Officer. A civil court could not order discovery, production or inspection of documents until it was of the opinion that such documents were relevant for the purpose of the issues involved in the suit pending before it. Similarly, the Income-tax Officer under section 131 although vested with the powers to make orders he will have to be satisfied that such order would be relevant for the purpose of deciding the case pending before him. Admittedly, it has been averred in the affidavit-in-opposition also that there was no pending case before the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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