AO can issue sec. 133 notice to financial institutions seeking info. of depositors on deposit above 1 lakh

Assessing Officer can issue ‘general’ notice under section 133(6) to Financial Institutions to furnish information regarding account holder with cash transactions or deposits of more than Rs. 1,00,000

The Supreme Court held as under:

1) Powers under section 133(6) are in the nature of survey and a general enquiry to identify persons who are likely to have taxable income and whether they are in compliance with the provisions of the Act;

2) It would not fall under the restricted domains of being ‘area specific’ or ‘case specific’;

3) Section 133(6) does not refer to any enquiry about any particular person or assessee, but pertains to information in relation to ‘such points or matters’ which the assessing authority issuing notices requires;

4) This clearly illustrates that the information of general nature can be called for. Seeking names and addresses of depositors who hold deposits above a particular sum is certainly permissible - Kathiroor Service Cooperative Bank Ltd. v. Commissioner of Income-tax (CIB) (2013) 39taxmann.com 49 (SC)