Section 133(6) — Power to Call for Information

Section 133(6) of the Income-tax Act, 1961 empowers income tax authorities to call for information from any person, including banks, to facilitate the assessment of income. This provision is significant as it allows tax authorities to gather necessary data that may not be directly available through the taxpayer. The section is often invoked during investigations or assessments to verify the accuracy of the taxpayer's claims. The statutory test under this section requires that the information sought must be relevant to any proceedings under the Act. The burden of proof lies with the tax authorities to justify the necessity of the information requested. In practice, this section is crucial for ensuring compliance and detecting tax evasion, as it enables authorities to cross-verify financial transactions and other relevant details.

Common Litigation Flashpoints

1. Scope of information that can be requested
2. Relevance of information to ongoing proceedings
3. Privacy concerns and confidentiality of requested data
4. Timeliness and manner of compliance with information requests

Judgments on Section 133(6) — Power to Call for Information

• Arya Roadways Company Pvt. Ltd. vs I.T.O., Ward-12(1), Kolkata — ITAT,
  The case was remanded to ensure a fair opportunity for the assessee to substantiate its claims regarding the expenditure.
• Vijay Kumar Ahuja vs ACIT — ITAT,
  Outstanding trade creditors cannot be added to income if they are genuine and relate to past transactions.
• Union of India & Anr. vs M/s. Ganpati Dealcom Pvt. Ltd. — SC,
  The 2016 Amendment Act cannot be applied retrospectively as it creates new offences and substantive changes, which cannot be applied to past transactions.