Section 133(6)

Section 133(6) is a section in the Income Tax Act which grants investigative power to the assessing officers. The investigative power includes demanding information that is relevant for any proceedings under the Income Tax Act. The investigative power also includes the making of enquiries and the verification of cash deposits under the 'Operation Clean Money'. The assessing authorities are empowered to issue a income tax notice under for general information for the purpose of enquiry in cases where there are no pending liabilities of income tax or other obligations. In this article, Section 133(6) of the Income Tax Act is explained.

Provisions under Section 133(6)

The features and provisions under Section 133(6) are listed below as follows:

The issuance of notice from any individual, including the assessee, under Section 133(6),
As per the provisions under this section, the information that can be called for on any point or accounts or matters that in the opinion of the authorities specified will be useful or relevant to any enquiry or proceeding under the Income Tax Act.
The information can be called for not always have been pending proceedings but can be called whether the proceedings are pending or not.
The information can be called for checking whether the proceedings are pending or not and also for the pending proceedings.
There is no farmed time limit for the calling for information.

Eligibility Criteria

As per Section 133(6), the power to call is given to the below following:

Under sub-sections 1 to 5 of Section 133 power can be called for by the Assessing Officer(AO), Joint commissioner or commissioner.
Under Section 133(6), it provides the power to call information to the AO, Joint Commissioner or Commissioner, Director or Commissioner and Director General or Chief Commissioner as well.
In the case of Double Taxation Avoidance Agreement (DTAA) under section 90, the powers section under Section 133(6) can be permitted only by the authority above the rank of Assistant Director or Assistant Commissioner as per section 131(2), despite the fact, there are no proceedings pending or any other income-tax authority.

Call for Information

Under this section, it grants the power to the below officers those who can call for the information from:

Any person defined under section 2(31) by the Income Tax Act,1961, including the banking officer or any concerned officer.
A list of persons those who have made the term or recurring deposits of 50,000 and above along with their addresses in the co-operative banks
Any person with a valid reason to believe to be a trustee, guardian or agent, to provide him/her with the return of the names of the persons for or who is trustee, guardian or agent, and of their addresses

Type of Information

The information that can be useful in the proceedings:

In relation to the information on “matters” or “such points".
To produce the statement of accounts and affairs that are verified by the above-specified authorities in a specified manner.

Terms and Conditions

It provides the power to call for the information only after the approval of the Director of Investigation or Commissioner of Income Tax.
The ITD system generates a notice. Hence, the do not submit the handwritten notice.
According to Section 133(6), reply to the notice by the person under verification, which can be done only through Online mode.
It is said that the verification under the ‘Operation Clean Money’ is to be made through Online-Verification Portal about the SOP.
In case the person under verification doesn’t give or reply to the notice in the allotted time period given by the assessing officer regarding the cash deposits in his/her bank accounts, the case would be escalated as “Not Acceptable”, and further actions can be taken as the procedure in the SOP of CBDT.

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Frequently Asked Questions

Common questions about Section 133(6) Income Tax Act: Investigative Powers Overview.

Section 133(6) of the Income Tax Act grants investigative powers to assessing officers, allowing them to demand information relevant for any proceedings under the Income Tax Act. It enables them to make inquiries and verify cash deposits under the 'Operation Clean Money' initiative.

Under Section 133(6), the Assessing Officer (AO), Joint Commissioner, Commissioner, Director, Commissioner of Income Tax, Director General, or Chief Commissioner can issue a notice calling for information from any person or entity.

The authorities can request information on any matters, points, accounts, or affairs that they deem useful or relevant for an inquiry or proceeding under the Income Tax Act. This includes details of bank deposits above a certain threshold.

No, there is no specified time limit for authorities to call for information under Section 133(6). They can request information whether proceedings are pending or not.

Yes, under Section 133(6), the authorities can request information from banking officers or any other concerned officers. This includes requesting a list of individuals who have made deposits above a certain amount in cooperative banks.

Replies to notices issued under Section 133(6) must be submitted online through the prescribed verification portal, as per the Standard Operating Procedure (SOP) of the Central Board of Direct Taxes (CBDT).

If a person fails to respond to a notice under Section 133(6) within the allotted time regarding cash deposits in their bank accounts, the case may be escalated as "Not Acceptable," and further actions can be taken as per the CBDT's SOP.

Yes, Section 133(6) allows the authorities above the rank of Assistant Director or Assistant Commissioner to request information related to Double Taxation Avoidance Agreements (DTAAs) under Section 90, even if there are no pending proceedings.

A notice under Section 133(6) can be issued only after obtaining approval from the Director of Investigation or Commissioner of Income Tax. The Income Tax Department's system generates the notice, and handwritten notices are not accepted.

Yes, under Section 133(6), the authorities can request information from any person they have reason to believe is a trustee, guardian, or agent, including the names and addresses of the individuals for whom they are acting in that capacity.