TaxTMI 
TaxTMI 
2020 (9) TMI 871
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....(Appeals) as well as the Income-tax Appellate 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....
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....irector or as the case may be, the Principal Commissioner or Commissioner. (ii) The Income-tax 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 delegati....
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....cordance with the directions of the Board. By clause (2) of the notification dated August 19, 2011 ([2011] 338 ITR (St.) 2 ), the Directors 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....
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....orities who are subordinate to it. (3) In issuing the directions or orders referred to in sub-sections (1) and (2), the Board or other Income-tax authority authorised by 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....
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....oner (Appeals) may, for the purposes of this Act,- (1) require any firm to furnish him with a return of the names and addresses of the partners of the firm and their respective shares ; (2) require any Hindu undivided family to furnish 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....
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....asis supplied), it is discerned that the senior officers of the Income-tax authorities have power to further issue directions or orders in writing for undertaking the task as per the provisions of the Act. Notification dated August 19, 2011 which was already in vogue prior to the issuance of the impugned notices, authorised 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,....
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....s conferred under the Income-tax Act, 1961 related to and in connection with the collection, collation, verification and dissemination of information in respect of territorial are mentioned in column(4) (ii) Though in the first blush, the argument of Sri C. A. Jojo looked attractive, but on a conjoint reading of the contents of the notifications dated December 10, 2014 and August 19, 2011, there is hardly any sub stance in the submission 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 auth....
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....urisdiction over the area within the State of Kerala, Union Territory of Lakshadweep and Minicoy. He has all powers envisaged under the Income-tax Act related to and in connection with collection, collation, verification and dissemination of information in respect of the area over which he has jurisdiction. By office order dated November 1, 2011, the Income-tax Officer, Thiruvananthapuram, Alappuzha, Kochi and Thrissur were authorised to function as Income-tax Officer (Intelligence) of the above three places. Letter dated September 2, 2013, is issued by the Director of Income-tax (Intelligence) to the above Income-tax Officers (Intelligence) authorising them to issue notices to co-operative banks/ urban co-operative banks/credit co-operative societies coming under the respective jurisdiction calling for information as contemplated under section 133(6) of the Income-tax Act. By virtue of these documents, the Income-tax Officer (Intelligence) is the authorised person who could issue exhibit P1, therefore, the allegation that the officer who issued exhibit P1 had no authority has to be rejected. Then coming to section 133(6) of the Income-tax Act, in Kathiroor Service Co-oper....