SHIV NARAIN Vs. JIWAN LAL

JUDGEMENT

(1.) IN a suit for rendition of accounts of a partnership filed by some partners against the other, the defendants summoned some record from the local Income-tax Office. This was objected to and it was stated that such document could not be allowed to be produced nor could any officer of the income-tax department give information derived from any assessment or other documents filed by an assessee with the income-tax office.

(2.) APPARENTLY, this position was adopted in view of Section 54 of the Income-tax Act, 1922, which prohibited such information being given. Subsequently, in the Income-tax Act of 1961, the above mentioned Section 54 was substituted by Section 137, which was substantially to the same effect. This Section 137, however, was repealed with effect from 1st April, 1964, and, consequently, the prohibition which existed before, was no longer there. Under Section 138 of the Act of 1961, however, there were certain provisions with regard to the disclosure of information respecting assessees. Sub-section (1) (a) provided that the Board or any other income-tax authority specified by it by a general or special order in this behalf may furnish or cause to be furnished to any other authority performing any functions under any law, relating to the imposition of any tax or to such officer, authority or body performing functions under any other law, as the Central Government may specify by a notification, any information relating to any assessee in respect of any assessment made under the Act of 1961 or under the Act of 1922, as may be necessary for enabling such officer to perform his functions. Clause (b) of the said Sub-section (1) provides that a person may make an application to the Commissioner and if the Commissioner is satisfied that it is in public interest to do so, he may furnish or cause to be furnished the information asked for.

(3.) SUB-SECTION (2) of Section 138 of the Act of 1961 provides that the Central Government may, having regard to the practices and usages customary or any other relevant factors, by order notified in the Official Gazette, direct that no information or document shall be furnished or produced by a public servant in respect of such matters relating to such class of assessees or except to such authorities as may be specified in the order.