Notice Under Section 133(6) Of Income Tax Act, 1961

Section 133(6) of the Income Tax Act, 1961 (“hereinafter referred to as Act”), provides powers to income tax return authorities to issue notices to any person, requiring them to furnish relevant information or documents in relation to any ongoing assessment or investigation of a taxpayer’s case.

These notices work as a mechanism for the tax department to collect evidence, verify claims, and ascertain the correctness of information disclosed by taxpayers in their returns of income or during assessment proceedings.

Key Aspects of Section 133(6) Notices:

  1. Notice Issue by Authority: Section 133(6) of the Act allows the Assessing Officer (AO) or any other designated income tax authority to issue notices to individuals, companies, firms, entities, or institutions, requiring them to furnish information or documents deemed necessary for any ongoing assessment or investigation purposes.
  2. Information and Documents requirement: Notice issued under Section 133(6) of the Act, may require the recipient to provide specific information, explanations, details & documents in relation to the taxpayer’s financial affairs, transactions, investments, assets, liabilities, income sources, or any other relevant particulars.
  3. Mode of Service: Section 133(6) of the Act, notices may be served upon the recipient through various modes as prescribed under the Income Tax Rules, 1962 such as registered post, speed post, hand delivery, email, or electronic communication.
  4. Timeline for Compliance: The notice under Section 133(6) of the Act, specifies the timelines within which the recipient is required to furnish the requisite information or documents. In case of any failure to comply within the desired timelines, it may result into penalties or adverse consequences.
  5. Authority to Conduct Inquiries: Subsequent to receipt of information or documents pursuant to a Section 133(6) notice, the income tax authorities have the authority to conduct further inquiries, investigations, or assessments based on the information gathered. Accordingly, further notices may be issued.

Procedures to be followed while issuing Section 133(6) Notices:

  1. Issuance of Notice: Section 133(6) notices are generally issued by the Assessing Officer (AO) or any other designated income-tax authority allowed to do so, based on the assessment or investigation requirements of a particular case.
  2. Grounds for Issuance: Section 133(6) notices can be issued on reasonable grounds to collect all the relevant information or evidence necessary for the proper tax assessment or investigation of a taxpayer’s case.
  3. Contents of Notice: Section 133(6) notices shall definitely specify the objective/purpose for which the information or documents are required, the relevant provisions of the Income Tax Act under which the notice is issued, and the consequences as a result of non-compliance.
  4. Compliances Process: When a notice u/s section 133(6) of the Act is issued, the recipient is required to furnish the requested information or documents within the prescribed statutory timelines. Non-compliance may result into penalties of Rs. 500/- per day till the default continues.

Taxcellent helps you in complying with notices issued u/s 133(6) of the Income Tax Act, 1961 by the Income Tax Department. The Taxcellent Team also assist you in submitting responses to notices issued under various sections of the Income Tax Act.

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