TaxTMI 
TaxTMI 
2020 (9) TMI 871
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....te Tribunal, have preferred these appeals, 34 in number. The Tribunal decided the matters on different dates ; the orders impugned in I. T. A. Nos. 289/19, 290/19, 297/ 19, 298/19, 302/19, 303/19, 304/19, 308/19 and 312/19 on August 23, 2017 ; in I. T. A. Nos. 291/19, 292/19, 293/19 and 305/19 on October 3, 2017 ; I. T. A. Nos. 287/19 and 294/19 on November 8, 2017 ; I. T. A. No. 307/19 on November 9, 2017 ; I. T. A. No. 73/18 on June 7, 2018 ; I. T. A. No. 311/19 on June 20, 2019 ; I. T. A. Nos. 270/19, 271/19, 273/19, 275/19, 276/19, 279/ 19, 280/19, 295/19, 200/19 and 309/19 on July 8, 2019 ; I. T. A. No. 274/19 on July 20, 2019 ; I. T. A. No. 272/19 on August 1, 2019 ; I. T. A. Nos. 299/ 19 and 265/19 on August 7, 2019 ; I. T. A. No. 306/19 on September 4, 2019 and I. T. A. No. 296/19 on October 1, 2019. 2. The facts have been taken from I. T. A. No. 73 of 2018, which, according to the learned counsel, is the lead case for adjudication of the questions of law raised in all the appeals. The questions of law raised for consideration are as following : "(1) Whether the Income-tax Officer (Intelligence) is an authority to issue notice under section 133(6) of the Income-tax Act t....
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.... Officer (Intelligence), Kochi did not have the jurisdiction to seek information vide notice dated September 10, 2013 (annexure A) as he derives the power only by Notification No. 77 of 2014, dated December 10, 2014 issued by the Central Board of Direct Taxes (annexure G). There is no delegation of power to the notification placed on record empowering the Income-tax Officer (Intelligence) to initiate proceedings under sub-section (6) of section 133 nor is there any material on record justifying the opinion which would be useful and relevant for the purpose of the proceedings. (iii) The expressions "enquiry" and "inquiry" have different connotation and cannot be read in the same manner. The power to hold enquiry under section 133(6) of the Act vests only with the Assessing Officer (emphasis supplied), the Deputy Commissioner (Appeals), the Joint Commissioner or the Commissioner (Appeals) as the case may be. The proviso does not authorize the Income-tax Officer (Intelligence) to make such an inquiry. (iv) Section 120 of the Act do not envisage any power of delegation in the absence of any direction of the Central Board of Direct Taxes. The "enquiry" under section 133(6) has no ne....
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....tors of Income-tax specified in column (2) of Schedule 2 was empowered to issue orders in writing to the Income-tax authorities subordinate to them for the exercise of such powers under the Act. 6. The expression "Income-tax authority" is of a wide amplitude and would also include "Assessing Officer". Notification dated December 10, 2014 empowered the Director to issue orders in writing to the Income-tax Officer (Intelligence) for the purpose of verification only. 7. The provisions of sub-section (6) of section 133 and the proviso thereto cannot be read in isolation but in conjunction with section 120, particularly sub-section (2) thereof. 8. Almost identical question has been deliberated upon by the Division Bench of this court in Kodur Service Co-operative Bank Ltd. v. DIT (Intelligence) [2014] 367 ITR 22 (Kerala). In the aforementioned case, an issue relating to the legality of notice, was challenged, by relying upon the judgment in Kathiroor Service Co-operative Bank Ltd. (supra) and it was held that as per the notification dated August 19, 2011 which was in vogue, the Directors of Income-tax had all the powers to issue orders in writing in relation to and in connection with....
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....y it may have regard to any one or more of the following criteria, namely : (a) territorial area ; (b) persons or classes of persons ; (c) incomes or classes of income ; and (d) cases or classes of cases. (4) Without prejudice to the provisions of sub-sections (1) and (2), the Board may by general or special order, and subject to such conditions, restrictions or limitations as may be specified therein,- (a) authorise any Principal Director General or Director General to perform such functions of any other Income-tax authority as may be assigned to him by the Board ; (b) empower the Principal Director General or Director General or Principal Director or Director to perform such functions of any Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner to issue orders in writing that the powers and functions conferred on, or as the case may be, assigned to, the Assessing Officer by or under this Act in respect of any specified area or persons or classes of persons or incomes or classes of income or cases or classes of cases, shall be exercised or performed by an Additional Commissioner or an Addition....
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....nish him with a return of the names and addresses of the manager and the members of the family ; (3) require any person whom he has reason to believe to be a trustee, guardian or agent, to furnish him with a return of the names of the persons for or of whom he is trustee, guardian or agent, and of their addresses ; (4) require any assessee to furnish a statement of the names and addresses of all persons to whom he has paid in any previous year rent, interest, commission, royalty or brokerage, or any annuity, not being any annuity taxable under the head "Salaries" amounting to more than one thousand rupees, or such higher amount as may be prescribed, together with particulars of all such payments made ; (5) require any dealer, broker or agent or any person concerned in the management of a stock or commodity exchange to furnish a statement of the names and addresses of all persons to whom he or the exchange has paid any sum in connection with the transfer, whether by way of sale, exchange or otherwise, of assets, or on whose behalf or from whom he or the exchange has received any such sum, together with particulars of all such payments and receipts ; (6) req....
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....thorised the Directors of Income-tax to issue orders in writing to the Income-tax authorities subordinate to them, for exercise of such powers under the Act. The relevant portion of the notification and its applicability to Kochi at Sl. No. 18 reads thus ([2011] 338 ITR (St.) 2 ) : "Section 120(1) and (2) of the Income-tax Act, 1961-Income tax authorities-Jurisdiction of Director General/Director (Intelligence and Criminal Investigation)-Supersession of Notification Nos. S. O. 883(E), dated September 14, 2001 : S. O. 494(E), dated March 13, 2008 ; S. O. 855(E) and S. O. 856(E), both dated March 31, 2007 Notification No. S. O. 1942(E), dated August 19, 2011. In exercise of the powers conferred by sub-sections (1) and (2) of section 120 of the Income-tax Act, 1961 (43 of 1961), and in super session of the notifications of the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, Number(s) S. O. 883(E), dated September 14, 2001, S. O. 494(E), dated March 13, 2008, S. O. 855(E), dated May 31, 2007 and S. O. 856(E), dated May 31, 2007, the Central Board of Direct Taxes hereby directs that : (i) the Director General of Income-tax specifie....
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....ission that the "Income-tax Assessing Officer" would exclusively have jurisdiction to call for verification vide notices, impugned and not fall within the purview of "Income-tax Authorities". The expression "Income-tax authorities" is of a wide amplitude and also include Assessing Officer as defined under section 133 of the Act. The role of both the authorities, besides verification, is also for collection, dissemination as well as enquiry. It is a matter of record that the appellants did not provide any information on receipt of the impugned notice resulting into imposition of penalty. (iii) There is nothing in the notification dated August 19, 2011, which would arrest the power of the Director of Income-tax to authorise Income-tax authorities to initiate actions. By specifying section 133, in the notification dated December 10, 2014, would not mean that the Income-tax authorities did not have any jurisdiction to issue the impugned notice in the year 2013. The procedure prescribed under sub-section (6) of section 133 is akin to a survey in order to ascertain whether the co-operative banks failed to divulge information with regard to the receipts of more than Rs. 5 lakhs within t....