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Indiscriminate use of summons is avoidable

You have justified the use of Section 133(6) for getting information, which is already available with the Income-tax Department, in Tax Forum of May 8. Be that as it may. I would like to point out the indiscriminate issue of summons for personal attendance of proprietors, partners or top executives of companies, even for getting routine information with which they may not be personally familiar. It should not be necessary to use the power under Section 131 in every case, where such information should be readily available even in response to any normal letter of enquiry. Is there any remedy against such abuse?

Information can be elicited by the Assessing Officer by a letter of enquiry addressed under Section 142(1) or Section 143(2) during the course of assessment or under Section 133 or even during survey under Section 133A and 133B. There is power of inspection under Section 134. The necessity for issue of summons under Section 131 should arise only in a case where the assessee does not respond to normal enquiry. Even in a case where summons is considered necessary, it need not always require personal attendance, since such summons can indicate that furnishing of the required documents or information will amount to compliance with such summons. Responsible officers are not trigger-happy and follow these guidelines.

It is interesting to note that similar complaints were voiced against central excise officers which, along with other complaints, were referred to the Lok Satta, which has now made the following recommendations:

"1. In case of requirement of documents initially, a letter requesting for copies of documents should be issued.

2. Summons should be issued only when all other modes of obtaining information have failed.

3. Summons should be issued only after approval is obtained from appropriate authority (Asst./ Dy. Commissioner).

4. The notice should state the reason for which an individual is being summoned and the time of appearance.

5. The summons should specify the nature and number of documents required".

In response to such recommendations, the Ministry vide letter F.No.201/07/2006-CX6 has directed the DGCEI to issue instructions to the field formations, reiterating the significance and use of summons only as a last resort, when it is absolutely required. It would appear that similar instructions by the Central Board of Direct Taxes can remove the grievance of taxpayers who otherwise co-operate with the Assessing Officers, without the need for exercise of the powers of the Court.

S. RAJARATNAM

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