Relevancy of documents is essential before issuing an income-tax summons for production of books and records.

The power to issue a summons for production of books and documents under section 131 of the Income-tax Act is co-extensive with a civil court's power, but it must be exercised only for the purposes of the Act and on relevant material. The assessing authority must apply its mind to whether the documents sought are relevant or necessary for the pending assessment or reassessment. A broad, unspecified requisition, particularly where the officer did not know what documents were being asked for, showed absence of such application of mind. The summons was therefore invalid and liable to be struck down.

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Issues: Whether a summons issued under section 131(1)(c) of the Income-tax Act, 1961, requiring production of books and documents could be sustained when the Income-tax Officer had not applied his mind to the relevancy of the documents sought.

Analysis: The power under section 131 was held to be co-extensive with the power of a civil court under section 30 of the Code of Civil Procedure, 1908, read with Order 11 Rules 12, 14 and 15, and therefore had to be exercised for the purposes of the Act and on relevant material. The officer issuing the summons must apply his mind to whether the documents required are relevant or necessary for the pending assessment or reassessment. A broad and unspecified requisition for documents, especially where the officer had no idea what the documents were and the records were in sealed boxes, showed absence of such application of mind.

Conclusion: The summons was invalid and liable to be struck down.

Ratio Decidendi: The power to require production of documents under section 131 of the Income-tax Act, 1961, is not arbitrary and can be exercised only after the authority applies its mind to the relevancy of the documents for the pending proceedings.

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