Section 133(6) notice requires a pending proceeding or statutory approval before inquiry; otherwise it is unsustainable.

A notice issued under section 133(6) of the Income-tax Act, 1961 is sustainable only when it relates to an existing or pending proceeding, or when a pre-proceeding inquiry is supported by the statutory approval of the Commissioner or Director. The expression "proceeding" was read as a proceeding pending on the date of the notice, while an inquiry may precede formal initiation of proceedings. On the record, neither a pending proceeding nor the required approval was shown, so the notice was held unsustainable and quashed.

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Issues: Whether a notice calling for information under section 133(6) of the Income-tax Act, 1961 could be sustained when no proceeding was shown to be pending and the requisite approval was not demonstrated.

Analysis: The power under section 133(6) extends to requiring information in relation to any inquiry or proceeding under the Act. The expression "proceeding" was understood as referring to an existing or pending proceeding on the date of the notice. An inquiry, however, may be made even before proceedings are initiated, but where no proceeding is pending the statutory safeguard of approval from the Commissioner or the Director must be shown. On the record, neither the pendency of any proceeding nor the grant of such approval was established.

Conclusion: The notice under section 133(6) was unsustainable and was quashed.

Ratio Decidendi: A notice under section 133(6) of the Income-tax Act, 1961 is valid only if it relates to a pending proceeding or, in the case of a pre-proceeding inquiry, is supported by the approval required by the statute.

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