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Legislative
background
Section 133A forms part of Part C of Chapter XIII of the Income-tax
Act, 1961 which deals with the powers of the Income Tax authorities.
Section 133A was inserted in the I. T. Act in the year 1964, to supplement
the powers of search u/s.132. As originally enacted, the said section
conferred powers on Income-tax Officer or Inspectors of Income-tax
(as authorised by the Income-tax Officer), to conduct survey only
for the purpose of inspecting any books of account or other documents
and they could place marks of identification thereon or make extract
therefrom.
Subsequently,
on the basis of recommendations of the Direct Taxes Enquiry Commission
(also popularly known as Wanchoo Committee), a new section 133A was
substituted for the existing section 133A (with effect from 1-10-1975)
by The Taxation Laws (Amendment) Act, 1975 (41 of 1975) and the powers
under section 133A were broadbased and most of the powers now available
were introduced by the said amendment.
Sub-section
(5) was also inserted by the said amendment and powers of enquiry
in respect of any ceremony even before assessment proceedings have
commenced is now available with the department.
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Enquiry
relating to expenditure incurred on function, etc. S. 133A(5)
Sub-section (5) of section 133A provides that an Income Tax Authority
may make enquiries as regards expenditure incurred in a function,
etc. organised by an assessee. The powers under sub-section (5) are
different from other provisions of section 133A. It authorises an
Income Tax authority to require the assessee, who has incurred any
expenditure on any function, ceremony, event or any other person,
who in the opinion of the Income-tax Authority is likely to possess
information in respect of such expenditure, to furnish information
as to any matter which may be useful for and relevant to any proceedings
under the Act and to record the statement of the assessee or any other
person in this behalf.
Enquiry can
be made and information sought not only from the person who has incurred
the expense but also from any other person, who in the opinion of
the Income-tax Authority, is likely to possess the information. For
example, in the case of marriage, he may make enquiries from a hotel,
a restaurant, caterers, decorators, printers of invitation cards,
the jewellers etc., who may give the information with regard to the
expenditure incurred at the time of marriage.
The power
can be exercised only after the event and the officers cannot visit
the event itself for survey. Basically, such an enquiry can also be
made in exercise of powers of assessment of the assessee, however,
in such an eventuality crucial time is lost as assessment would be
at much later date. By enacting sub-section (5) power is now available
to make enquiry immediately after the event.
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Departmental
circulars
Following circular explains the intent and purpose of introduction
of sub-section (5):
Departmental
Circular No. 179, dated 30th September, 1975:
"The Income-tax
authorities will also have the power to collect information and record
statements of persons concerned at any time after any function, ceremony
or event even before the stage of assessment proceedings for the following
year for which the information may be relevant, if they are of the
opinion, that having regard to the nature, scale or extent of the
expenditure incurred, it is necessary to do so. The object of this
provision is to help collecting evidence about ostentatious expenditure
immediately after the event to be used at the time of assessment."
"The Government
will launch a drive against ostentatious wedding ceremonies and other
social functions which often involve blatant use of tax-evaded money.
According to Revenue Secretary, Dr. Nitish Sengupta, such ostentation
is inconsistent with the egalitarian values of Indian society.
Section
133A of the Income-tax Act, 1961, authorises Income-tax Officers to
make surveys of marriage ceremonies and other ostentatious social
functions and to detect use of unaccounted money. So far, this provision
has not been sufficiently used to make a visible impact on the curbing
of wasteful expenditure."
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How the
powers are exercised
Normally on information being received of any lavish marriage
or any other function, the department issues notices to persons who
have organized the event as well as the contractors engaged like caterers,
decorators, etc. and calls for information and in appropriate cases
also records their statements. Specimen of letters issued to parents
of bride and bridegroom after their marriage is given hereunder.
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Specimen
copy of enquiry letter u/s. 133A(5) issued to father of the bride
Office
of the
Dy. Director of Income-tax (Inv),
Date ……….
To
Sir,
Sub: –
Enquiry under section 133A(5) of the I. T. Act, 1961 –
You are
hereby requested to furnish the following information u/s. 133A(5)
of the I. T. Act, 1961 in connection with the marriage of your
daughter Miss ___________________ held on ______________.
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Please
state the sources of your income and furnish the photostat
copy of the latest assessment order if you are assessed to
tax.
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Please
state the source of income of your wife and furnish the photostat
copy of the latest assessment order in her case, if she is
assessed to tax.
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Please
state the sources of income of your daughter Ms. ________________
and furnish the photostat copy of the latest assessment order
in her case, if she is assessed to tax.
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Please
furnish the following details in respect of the engagement/tilak
ceremony of your daughter.
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Details
of venue where the engagement ceremony has been held.
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No.
of total guests who have attended the engagement/tilak
ceremony of your daughter.
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Details
of invitation cards if got printed on the occasion of
the engagement ceremony of your daughter containing name
and address of the printer and the No. of invitation cards
got printed.
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Details
of sweets/gifts distributed (if any) alongwith the invitation
cards with the photostat copy of the cash memos for purchasing
the sweets/gifts.
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Details
of stay arrangements in case made for the relatives and
guests who have attended the engagement ceremony of your
daughter.
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Details
of lunch/dinner given on the occasion of the engagement
ceremony of your daughter containing the names and addresses
of the caterers/hotels who have been engaged for providing
lunch/dinner on the occasion and the venue of the lunch/dinner.
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Details
of the decoration on the occasion of the engagement ceremony
containing the name and address of the decorator engaged
for the purpose.
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Details
of the video film or photography done on the occasion
of the engagement ceremony of your daughter containing
name and address of the photographer/video cameraman engaged
for the purpose of amounts paid to them.
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Details
of the musical programmes arranged on the occasion of
the engagement ceremony of your daughter containing name
and address of the musical party.
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Details
of jewellery gifted to the bride and bridegroom by the
various persons.
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Details
of renovation/repair works and white wash etc. of your
houses done by you on the occasion of the engagement ceremony
of your daughter.
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Name
and address of the beauty parlour engaged by you on the
engagement of your daughter and the amount paid to them
by the various members of your family on the occasion.
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Details
of gifts received by the bride on the occasion of the
engagement ceremony containing the names and addresses
of the persons who have made the gifts along with the
value and particulars of the gifts made by them.
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Details
of gifts given on the occasion of the engagement by various
persons.
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Details
of clothes and other items purchased on the occasion of
the engagement ceremony of your daughter by you family
members.
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Details
of taxis/buses hired by you on the occasion of the engagement
ceremony of your daughter and amounts paid to them.
- Please furnish
the following details in respect of the marriage ceremony of
your daughter,
- Please furnish
the details of major repairs/white wash and other works
done at your residence on the occasion of marriage of your
daughter.
- Please furnish
the name and address of the printing press from where you
have got the invitation cards printed on the occasion of
marriage of your daughter.
- Please give
the No. of invitation cards got printed for distribution.
- Please give
the No. of invitation cards actually distributed for the
marriage ceremony.
- Please state
the amount paid for getting the invitation cards for the
marriage printed along with the photostat copy of the bills
received from the printing press for printing cards.
- Please state
the cost of sweets if distributed along with the invitation
cards and furnish the photostat copy of the cash memo for
purchasing the sweets.
- Please furnish
the particulars of any other items of distributed along
with the invitation cards for marriage along with the photostat
copy of the cash memo for purchasing such items.
- Please furnish
the name and address of the decorators of the venues of
the marriage ceremony alongwith the photostat copy of the
bill raised by them.
- Please furnish
the name and address of the person engaged for illumination
of the venue of the marriage ceremony along with the photostat
copy of the bills raised by them.
- Please furnish
the name and address of the musical and other entertainment
parties engaged by you for the marriage ceremony of your
daughter along with the photostat copy of the bills raised
by them.
- Please furnish
the details of expenses incurred on Dandya Ras/Garba or
any other entertaining programmes held on the occasion of
the marriage of your daughter.
- Please furnish
the name and address of the persons who have offered the
catering services on the occasion of the marriage of your
daughter along with the photstat copy of the bills raised
by them.
- Please furnish
the name and address of the tent houses who have supplied
the tents on the occasion the marriage of your daughter
along with the photostat copy of the bills raised by them.
- Please furnish
the name and address of the band party engaged by you on
the marriage ceremony of your daughter along with the photostat
copy of the bills raised by them.
- Please furnish
the name and address of the boarding places like barat–ghar,
hotels, guest houses hired by you for the boarding for the
guests and marriage party on the occasion of the marriage
of your daughter along with the photostat copy of the bills
raised by them.
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Please
furnish the details of gifts received by you and the
bride on the occasion of the marriage containing the
names and addresses of the donors and the particulars
of items gifted by them.
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Please
furnish details of gifts given by you to guest/relatives/
employees on the occasion of marriage of your daughter.
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Please
furnish the particulars of jewellery received by your
daughter on the occasion of marriage ceremony containing
the name and address of the persons from whom it is
received along with the value of the items of jewellery
received.
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Please
furnish the details of jewellery purchased by you
and your family members in connection with the marriage
of your daughter. Please enclose the bill and explain
the sources of payments made to the jeweller.
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Please
furnish the name and address of the photographer engaged
by you on the occasion of the marriage ceremony of your
daughter along with the photostat
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Please
furnish the names and addresses of the video-cameraman
engaged by you on the occasion of marriage ceremony of
your daughter along with the photostat copy of the bills
raised by them.
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Please
furnish the details of the travelling expenses of your
guests and relatives borne by you.
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Please
furnish the details of hiring of buses/ cars and other
vehicles on the occasion of the marriage of your daughter
containing amount and names and address of the persons
to whom the hire charges have been paid.
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Please
furnish the details of cold drinks, liquor and other snacks
served on the occasion of the marriage containing the
names and addresses of the persons of its class (marriage
party).
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Please
furnish the details of payments made to beauty parlours
by the bride and other family members on the occasion
of the marriage of your daughter.
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Please
furnish the details of clothes and other items purchased
on the occasion of marriage ceremony of your daughter.
- Please furnish the
details of any other expenses incurred by you on the occasion
of the engagement/ marriage ceremony and other connected ceremonies
incurred by you but not covered under the above details furnished
by you.
- Please indicate
the source of payments of all the items showing bank account
Nos./ branches on which the cheques are drawn. Please attach
copies of bank statement for which the payments are made and
GIR/ PA No. of the persons who have made the payments.
Your
reply is requested by ___________.
- Specimen of enquiry
letter u/s. 133A(5) issued to father of the bridegroom
Office
of the
Dy. Director of Income-tax (Inv)
Date
To
Sir
Sub: -
Enquiry under section 133A(5) of the I. T. Act, 1961 –
You are
hereby requested to furnish the following informations u/s. 133A(5)
of the I. T. Act, 1961 in connection with the marriage ceremony
of your son Shri ________________ with Ms. __________ held on
____________.
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Please
state the sources of your income and furnish the photostat
copy of the latest assessment order, if you are assessed to
tax.
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Please
state the sources of income of your wife and furnish the photostat
copy of the latest assessment orders in her case, if she is
assessed to tax.
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Please
state the sources of income of your son Shri _____________
and furnish the photostat copy of the latest assessment order,
if he is assessed to tax.
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Please
furnish the following details in connection with the engagement
ceremony of your son.
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Details
of renovation, repair work, whitewash etc. of the house
done by you on the occasion of the engagement ceremony
of your son.
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No.
of close relatives who have attended the tilak/engagement
ceremony of your son.
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Details
of gifts received on the occasion of the engagement ceremony
of your son.
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Details
of musical programmes arranged by you on the occasion
of the engagement ceremony of your son.
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Details
of ornaments/jewellery purchased by you on the occasion
of the engagement ceremony of your son.
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Number
of guest who have attended the engagement ceremony of
your son.
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Details
of the clothes purchased by you on the occasion of the
engagement ceremony of your son containing the amount
paid for it.
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Number
of invitations cards got printed the distributed among
your friends and relatives for the purpose of inviting
them on the engagement ceremony of your son.
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Details
of taxis/buses hired by you for the purpose of engagement
ceremony of your son.
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Details
of expenses incurred on programmes like Dandiya Ras/ Garba
etc.
You
are hereby requested to furnish the following details in respect
of the marriage ceremony of your son.i. Please furnish the
names and addresses of the printing press from where you have
got the invitation cards of the marriage of your son printed.ii.
No. of the invitation cards got printed for distribution.iii.
No. of invitation cards actually distributed in marriage ceremony
of your son.iv. The amount paid for getting the invitation
cards printed along with the photostat copy of the bill received
for the printing press for getting the cards printed.v. Please
furnish the details of sweets distributed along with the invitation
cards on the occasion of the marriage of your son along with
the photostat copy of the cash memo for purchasing the sweets.vi.
Please furnish the particulars of any of the items distributed
along with the invitation cards on the occasion of the marriage
of your son.
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Please
furnish the names and addresses of the printing press from
where you have got the invitation cards of the marriage of
your son printed.
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Please
furnish the names and addresses of the printing press
from where you have got the invitation cards of the marriage
of your son printed.
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No.
of the invitation cards got printed for distribution.
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No.
of invitation cards actually distributed in marriage ceremony
of your son.
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The
amount paid for getting the invitation cards printed along
with the photostat copy of the bill received for the printing
press for getting the cards printed.
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Please
furnish the details of sweets distributed along with the
invitation cards on the occasion of the marriage of your
son along with the photostat copy of the cash memo for
purchasing the sweets.
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Please
furnish the particulars of any of the items distributed
along with the invitation cards on the occasion of the
marriage of your son.
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Please
furnish the details of repairs, whitewash at the residence
on the occasion of the marriage of your son.
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Please
furnish the name and address of musical other entertainment
parties engaged by you for the marriage ceremony of your
son along with the photostat copy of the bills raised
by them and paid/ payable by you.
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Please
furnish the details of jewellery purchased by you on the
occasion of the marriage of your son containing the name
and address of the jewellers from whom the jewellery has
been purchased or got remade by you on the occasion of
the marriage of your son.
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Please
furnish the details of the clothes purchased or got stitched
on the occasion of the marriage of your son along with
photstat copy of the cash memos.
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Please
furnish the details the band party engaged by you on the
occasion of the marriage of your son along with the photstat
copy of the bill raised by them.
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Please
furnish the details of taxis and buses hired by you on
the occasion of the marriage ceremony of your son.
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Please
furnish the details of gifts given by you to the guests
on the occasion of the haldi ceremony of your son.
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Please
furnish the details of any guest houses or hotels booked
by you for the guest on the occasion of the marriage ceremony
of your son.
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Please
furnish the details of the gifts received by the bridegroom
on the occasion of the marriage containing names and addresses
of the donors and particulars of the items received as
gifts.
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Please
furnish the names and addresses of the photographers or
video films makers engaged on the occasion of the marriage
ceremony of your son along with the photstat copy of the
bills raised by them.
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Please
furnish the details any reception party given by you after
the marriage of your son containing the venue of the party,
number of guests attended, names and addresses of the
caterers, name of the musical party engaged on the occasion
and illumination charges paid.
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Please
furnish the details of honeymoon expenses.
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Please
furnish the details of gifts made to the employees and
guests on the occasion of the marriage of your son by
you and your family members.
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Please
furnish the details of any other expenses incurred by
you on the occasion of the engagement/marriage of your
son but not covered in the above mentioned items of expenses.
- Please indicate
the sources of payment of all items, bank account numbers and
branches. Please attach copies of bank accounts from which payments
are made. Your reply is requested by 29-7-1993.
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