ITR
Summons from the investigation wing before any case
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Facts
Yes. Sec 131(1A) (now within Sec 246) lets specified authorities use summons powers before any proceeding is pending, where they have reason to suspect income has been concealed.
Provisions and law
- Sec 131(1A), Income-tax Act 1961 (now Sec 246, Income-tax Act 2025)Summons power can be used before any proceeding is pending, where concealment is suspected
- Sec 131, Income-tax Act 1961 (now Sec 246, Income-tax Act 2025)Officers have civil court powers to summon, examine on oath and call for books and documents
Analysis
These summonses often follow information from banks, property registrars or other agencies. Example: the investigation wing asks about share trading in a stock flagged for price rigging. Treat it seriously, prepare documents, and answer only factual questions. The outcome can feed into a reassessment, so take advice before attending.
Conclusion
- Authenticate the summons and DIN
- Identify the transactions likely to be discussed
- Collect bank, broker and contract records
- Attend with your CA
- Get a copy of the statement
A Savvy can do this for you
Summons, Sec 131 (now 246)
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