1999 (11) TMI 886 - HC - Income Tax

Summary

Issues:
1. Challenge to notice under Section 133(6) of the Income-Tax Act, 1961 by a Co-operative society.
2. Interpretation of the term 'person' under Section 2(31) of the Act.
3. Validity of the notice seeking information about deposits made by members.
4. Requirement of prior approval for seeking information under Section 133(6).
5. Scope of information that can be requested under Section 133(6).
6. Comparison with previous judgments on the scope of 'enquiry' and 'proceedings' under Section 133(6).

Analysis:

1. The petitioner, a Co-operative society, challenged a notice under Section 133(6) of the Income-Tax Act, 1961, seeking information about deposits made by its members. The petitioner contended that it should not be required to furnish the information as it is not a 'person' or 'banking company' under the Act.

2. The definition of 'person' under Section 2(31) of the Act includes any association of persons, making a Co-operative society fall under this definition. Thus, the respondent is entitled to request information from the petitioner society.

3. The notice sought information about deposits made by members, aiming to verify income declarations and sources of deposits. The court found this information relevant for tax enquiries and not a roving enquiry, thus upholding the validity of the notice.

4. The petitioner argued that the authorized officer should record the necessity of information before issuing the notice. However, the court found that the notice referred to the approval of the Director of Income Tax, meeting the requirement of prior approval for seeking information under Section 133(6).

5. Section 133(6) empowers officers to require information useful for tax enquiries. The court held that seeking information about deposits made with the Co-operative society falls within the scope of 'points or matters' relevant to tax proceedings, allowing the respondent to request such details.

6. Previous judgments were cited to distinguish between 'enquiry' and 'proceedings' under Section 133(6). The court clarified that the amended provision enables officers to seek general information related to deposits, not limited to ongoing proceedings, aligning with the broader scope of 'enquiry' post-amendment.

In conclusion, the court dismissed the petition, upholding the validity of the notice under Section 133(6) and requiring the petitioner to furnish the requested information within the specified time frame, emphasizing the relevance of the information for tax enquiries.