General information notices under tax law upheld for deposit data from co-operative societies, with officer authorisation confirmed.

Section 133(6), as amended, authorises requisition of general information relevant to an enquiry even when no proceeding is pending, subject to prior approval where required. The Kerala HC held that the notice for deposit-related information from co-operative societies was within this power because it sought limited, compliance-oriented data and did not amount to impermissible interference with the societies' internal administration. The issuing Income-tax Officer was also found duly authorised under the delegation and authorisation framework. Both the statutory and constitutional objections failed, and the notices were upheld.

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Issues: (i) whether the officer who issued the notice under section 133(6) of the Income-tax Act, 1961 was duly authorised under the statutory delegation of powers; (ii) whether a general notice calling for deposit-related information from co-operative societies was valid under section 133(6) and not barred by the constitutional or statutory position governing co-operative societies.

Issue (i): whether the officer who issued the notice under section 133(6) of the Income-tax Act, 1961 was duly authorised under the statutory delegation of powers.

Analysis: The notice was traced to the notification issued under section 120(2) of the Income-tax Act, 1961, together with the office order and subsequent authorisation issued by the Director of Income-tax (Intelligence). These materials showed that the Income-tax Officer (Intelligence) was empowered to act within the relevant territorial jurisdiction and to issue notices for collection, collation, verification and dissemination of information under the Act.

Conclusion: The issuing officer was duly authorised, and this challenge failed.

Issue (ii): whether a general notice calling for deposit-related information from co-operative societies was valid under section 133(6) and not barred by the constitutional or statutory position governing co-operative societies.

Analysis: Section 133(6), as amended, permits requisition of information useful for or relevant to an enquiry or proceeding under the Act, and where no proceeding is pending, prior approval of the Director or Commissioner is required. The provision was construed as enabling a general enquiry in the nature of a survey to collect information about persons likely to have taxable income and to check tax compliance effectively. The information sought here was general in nature, confined to cash deposits above the stipulated limit, and did not amount to interference with the internal administration of co-operative societies or require State control over their affairs. The constitutional argument based on the Seventh Schedule therefore did not defeat the notice.

Conclusion: The notice was validly issued under section 133(6), and the constitutional objection failed.

Final Conclusion: The appeals were found to be without merit and the notices were upheld.

Ratio Decidendi: After the Finance Act, 1995 amendment, section 133(6) authorises the collection of general information relevant to an enquiry even when no proceeding is pending, subject to prior approval where required, and such power is not confined to case-specific or area-specific inquiries.

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