Report No. 12

146. Enquiry before assessment.-

(1) For the purpose of making an assessment under this Act, the Income-tax Officer may serve on any person who has made a return under section 143(1) [22(1)] or section 143(3) [22(2A)] or upon whom a notice has been served under section 143(2) [22(2)] (whether a return has been made or not), a notice requiring him, on a date to be therein specified,-

(i) to produce, or cause to be produced, such accounts or documents as the Income-tax Officer may require, or

(ii) to furnish in writing and verified in the prescribed manner information in such form and on such points or matters (including a statement of all assets and liabilities of the assessee, whether included in the accounts or not) as the Income-tax Officer may require:

Provided that the previous approval of the Commissioner shall be obtained before requiring the assessee to furnish a statement of all assets and liabilities not included in the accounts:

Provided further that the Income-tax Officer shall not require the production of any accounts relating to a period more than three years prior to the previous year.

[Section 22(4)]

(2) For the purpose of obtaining full information in respect of the income or loss of any person, the Income-tax Officer may make such enquiry as he considers necessary.

(3) The assessee shall, except where the assessment is made under section 148 (section 23(4), part regarding best judgment assessment], be given an opportunity of rebutting the substance of any material gathered on the basis of any enquiry under sub-section (2) and proposed to be utilised for the purpose of the assessment.