Notice under Section 131(1A) Of Income Tax Act

Section 131(1A) works with empowers the officers of the investigation wing viz. Assistant Director, Deputy Director or the Director of Income-tax (Investigation). To begin with, a notice under Section 131(1A) is very common now a days. It can be used even if there is no proceeding pending. 

Section 131(1A) helps in giving the officers more power, there are certain situations that find the need that the Income Tax officers should have a little more authority and power. Below are the situations, which make use of Section 131(1A) and allow the Income Tax officers to have notices issued.

1. The income tax office can issue a notice before he goes ahead with taking any action under clauses (i) to (v) of Section 132; i.e

• enter and search any building, place, vessel, vehicle or aircraft where he has reason to suspect that such books of account, other documents, money, bullion, jewellery or other valuable article or thing are kept;
  
  
• break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (i) where the keys thereof are not available;
  (iia) search any person who has got out of, or is about to get into, or is in, the building, place, vessel, vehicle or aircraft, if the authorized officer has reason to suspect that such person has secreted about his person any such books of account, other documents, money, bullion, jewellery or other valuable article or thing;
  
  (iib) require any person who is found to be in possession or control of any books of account or other documents maintained in the form of electronic record as defined in clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000), to afford the authorized officer the necessary facility to inspect such books of account or other documents;
  
  
• seize any such books of account, other documents, money, bullion, jewellery or other valuable article or thing found as a result of such search.
  
  
• place marks of identification on any books of account or other documents or make or cause to be made extracts or copies there from;
  
  
• make a note or an inventory of any such money, bullion, jewellery or other valuable article or thing. 

2. The income tax officer can issue a notice, even if he or she has a reason to suspect that there is a concealment of the income earned by the person; 

3. The income tax officer can even issue a notice, even if there are no proceedings currently withstanding with respect to that person or even a group of people. 

How to Reply to a Summon Notice under section 131(1A)?  

To begin with the first thing you must do is to keep all the summoned documents ready. What you must be careful is not to ignore such notice, and if you have been asked to be present physically, make sure you do. If you have a valid reason, you can seek extension, but it is limited to once generally and if it allows hiring an Authorized Representative (AR). You may ask him to represent you or accompany you during the proceedings.

You can also send all the documents within the deadline mentioned in the notice. In case some document is missing, make sure you seek an extension from AO. Non-compliance with the summons / notice issued under section 131 may result in levy of penalty of rupees 10,000 for such a default.


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