Section 133(6) notice to a bank valid where prior approval was obtained, even without a pending tax proceeding.

Section 133(6) was construed as an information-gathering power permitting the revenue to require any person, including a banking company, to furnish information relevant to an enquiry or proceeding under the Act. The second proviso was read as authorising use of that power even when no inquiry or proceeding was pending, provided prior approval of the Director or Commissioner, as applicable, was obtained before issuing the notice. On the stated facts, the notice was issued at the instance of the Director of Income-tax (Investigation), so the statutory safeguard was satisfied and the notice was treated as valid.

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Issues: Whether notice issued under section 133(6) of the Income-tax Act, 1961 could be validly issued to a banking company for furnishing information, even when no inquiry or proceeding was pending, and whether prior approval of the prescribed higher authority was required.

Analysis: The provision was construed as an information-gathering power enabling the revenue to require any person, including a banking company, to furnish information useful or relevant to an enquiry or proceeding under the Act. The second proviso was read as permitting exercise of the power even where no proceeding was pending, subject to the safeguard that, in such a case, approval of the Director or Commissioner, as the case may be, must be obtained before issuance of the notice. On the facts, the notice was issued at the instance of the Director of Income-tax (Investigation), satisfying the statutory framework.

Conclusion: Notice under section 133(6) was held to be valid, and the challenge to its issuance failed.

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