Income Tax Laws - Everything About Section 131

What is the Validity of the Summons Issued Under Section 131?

The summons was considered invalid when issued under Section 131 instead of 131(1A), which later changed after section 292(B) was introduced under the Income Tax Act 1961. Here are the details that should be followed to avoid the court from assuming the issuance of the summon has been done without any logic:

1. Fill in the particulars and leave out those points that are not required
2. Mention the reason of the summon clearly
3. Mention the specific Act under which the summon has been issued

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

The following are the necessary steps that should be taken to respond to a summon notice under Section 131(1A):

1. Ensure that your summoned documents are ready to be produced
2. Must visit physically, if asked to do so as per the notice
3. You can seek for extension for a limited period, if you have a valid reason

How to Prepare and Submit a Response on Time?

Here are the following ways of submitting the response depending on specific situations:

1. Submitting response electronically: If AO thinks income has been concealed and property has been purchased recently, then you need to prove the source of funding and purchase by submitting your response electronically.
2. Submitting response by being present physically: In some cases, you may need to visit physically to submit your response. You can even hire an Authorized. Representative (AR) to accompany you during the proceedings. You can also seek extension from the AO, if you have missed submitting some of the documents.

What is the Purpose of the Proceedings?

The following are the purpose behind the issuing the summons:

1. Issue of notice:

Notice can be issued under two points, such as after the search and conclusion of seizure under Section 131 (1A), and during survey under Section 131.

1. Under Section 131(1A), issuance of notice:
   Here are the following conditions under which notice is issued under Section 131 (1A):
   
   1. Under the provisions of section 132, after completing the relevant searches notices under section 131(1A) can be issued, as per the Gujarat High Court.
   2. As per the Allahabad High Court, a warrant under section 132 need not to be issued in any material context by the authorizing officer.

1. Under Section 131, issuance of the notice during the survey:
   Here are the following conditions under which notice can be issued under Section 131 during survey:
   
   1. Notice can be issued under survey if under Section 133 A (6) (only under undeniable circumstances) and not for Section 133(A)
   2. The behavior of the assesses decides the issuance of notice under Section 131
   3. Notice will be issued if the assess is yet to corporate with survey team
   4. While no notice will be issued, if the assesses have helped the survey team
   5. If the survey has been completed, then no notice will be issued under Section 131
   6. Notice will be issued for pending or ongoing survey

1. Appearance of the person during the hearing:
   Here are two scenarios
   
   1. Witness needs to be present physically and no authorised representative can represent the witness 
   2. Any person can choose or represent in the presence authorises representative, other than the witness
      

What is the Relation between 131(1A) and the Civil Code of Procedure?

Section 131(1A) issues commissions, enforces attendance of the concerned person, and inspects the property. While the Civil Code of Procedure manages the civil proceedings and allows the section to do various activities such as producing the required books of accounts and documents and examining the assesses on oath.