Section 132A of ITA, 1961 : Section 132A: Powers To Requisition Books Of Account, Etc

Explanation using Example

Imagine a scenario where the Commissioner of Income Tax receives information that a business owner, Mr. Sharma, who was previously issued a notice to produce certain financial documents for tax assessment, has failed to comply. Additionally, it's known that these documents are currently held by the Enforcement Directorate due to a separate ongoing investigation.

In this situation, the Commissioner believes that the documents in the Enforcement Directorate's possession are crucial for Mr. Sharma's income tax assessment. Therefore, the Commissioner uses the power granted under Section 132A of the Income-tax Act, 1961, to authorize an Assessing Officer to formally request the transfer of those documents from the Enforcement Directorate to the Income Tax Department.

The Assessing Officer, now acting as the requisitioning officer, sends a requisition to the Enforcement Directorate, and as per the law, the Enforcement Directorate complies by handing over the documents. These documents can now be used by the Income Tax Department to complete Mr. Sharma's tax assessment, ensuring that all taxable income is properly accounted for.

This application of Section 132A ensures that tax authorities can access necessary documents for tax proceedings, even when they are held by other law enforcement agencies, thereby aiding in the prevention of tax evasion.