Assessment information powers upheld: tax officer may require assets and liabilities details during a pending assessment.

The Income-tax Officer was competent to call for a statement of assets and liabilities under section 142(1)(ii) where the request related to a pending assessment and was made for the purpose of making that assessment. The provision expressly authorised a person who had filed a return to be required to furnish written information on matters relevant to the assessment, including assets and liabilities whether or not reflected in the accounts. Because the notice was issued for assessment year 1962-63 while the assessment was pending, the demand fell within statutory power, and any objection to the future use of the material was premature.

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Issues: Whether the Income-tax Officer was competent to require the assessee to furnish statements of assets and liabilities under section 142(1)(ii) of the Income-tax Act, 1961, in connection with a pending assessment.

Analysis: The provision expressly empowered the Income-tax Officer, for the purpose of making an assessment, to require a person who had made a return to furnish information in writing and in the prescribed manner on such points or matters as he might require, including a statement of all assets and liabilities of the assessee whether included in the accounts or not. The notice was issued in relation to the assessment year 1962-63, which was pending, and the demand for information was therefore within the statutory authority conferred by the Act. Any objection as to the eventual use of the material was held to be premature.

Conclusion: The notice was valid and the Income-tax Officer had competence to call for the information; the writ petition failed.

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