Section 252 — Power to Call for Information | ITA 2025

Section 252 — - POWER TO CALL FOR INFORMATION

Section 252 is the substantive equivalent of 1961 s. 133 -- the foundational provision empowering income-tax authorities (AO / Joint CIT / Joint Director) to CALL FOR INFORMATION from any person regarding ANY MATTER OR PERSON useful for / relevant to any inquiry / proceeding under the Act. The provision is broader than s. 268 (inquiry before assessment) -- not limited to assessment proceedings. Used for: (a) general intelligence-gathering about taxpayer / industry / market; (b) verification of third-party transactions; (c) cross-reference checks; (d) AIS / TIS / Form 26AS data validation; (e) financial-institution / bank cooperation. Failure to comply attracts penalty under s. 272A (1961 s. 271(1)(b)).

Statutory text — Income-tax Act, 2025

Marginal note -- Power to call for information

( 1) The Assessing Officer, the Joint Commissioner or the Joint Commissioner (Appeals) or the Commissioner (Appeals) may, for the purposes of this Act, require any—

(a) person, including a banking company or any officer thereof, to furnish, within such time, requisite information or to furnish statements of account and affairs verified in such manner specified by such authority, giving such information in relation to such matters as, in the opinion of such authority, will be useful for, or relevant to, any enquiry or proceedings under this Act;

(b) firm to furnish him with a return of the names and addresses of the partners of the firm and their respective shares;

(c) Hindu undivided family to furnish him with a return of the names and addresses of the manager and the members of the family;

(d) person whom he has reason to believe to be a trustee, guardian or agent, to furnish him with a return of the names of the persons for or of whom he is trustee, guardian or agent, and of their addresses;

(e) assessee to furnish a statement of the names and addresses of all persons to whom he has paid in any tax year, rent, interest, commission, royalty, brokerage, or any annuity (not being any annuity taxable under the head “Salaries”), amounting to more than ` 10000, or such higher amount as may be prescribed, together with particulars of all such payments made;

(f) dealer, broker or agent or any person concerned in the management of a stock or commodity exchange to furnish a statement of the names and addresses of all persons to whom he or the exchange has paid any sum in connection with the transfer, whether by way of sale, exchange or otherwise, of assets, or on whose behalf or from whom he or the exchange has received any such sum, together with particulars of all such payments and receipts.

(2) The powers conferred under sub-section (1)(a) may also be exercised by the competent authority or the Assistant Director.

(3) The powers under sub-section (1)––

(a) shall not be exercised by any income-tax authority below the rank of Principal Director or Director or Principal Commissioner or Commis- sioner, other than the Joint Director or Assistant Director, without the prior approval of the Principal Director or Director or, as the case may be, the Principal Commissioner or Commissioner, in a case where no proceeding is pending;

(b) may be exercised by an income-tax authority notified under section 246(2) (a), for the purposes of an agreement referred to in section 159, even if no proceedings are pending before it or any other income-tax authority. Powers of survey.

Corresponding provision — 1961 regime

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
INCOME-TAX ACT, 2025 -- s. 252	INCOME-TAX ACT, 1961 -- s. 133
Sub-s. (1) -- AO / JCIT / JCIT power to call information	1961 s. 133(1)/(2)/(3)/(4)/(5)/(6)
Banks / financial institutions cooperation	1961 s. 133(6)
Government / local authority cooperation	1961 s. 133(2)
No proceedings pending requirement	1961 s. 133(6) Proviso
FA 2017 expansion -- broader information categories	1961 s. 133 [FA 2017]

STATUTORY ARCHITECTURE

INFORMATION CATEGORIES (sub-s. 1): (a) FROM PARTNERSHIP FIRM / PARTNER: information about firm's affairs / individual partner's share; (b) FROM HUF: information about HUF property / coparceners; (c) FROM ANY OFFICER OF GOVERNMENT / LOCAL AUTHORITY: official records / certificates relevant to assessment; (d) FROM BANKS / FINANCIAL INSTITUTIONS: account details / transactions / loans / deposits / KYC; (e) FROM ASSESSEE OR ANY PERSON RELATED: any documents / accounts / details. ELIGIBLE OFFICERS: AO / JCIT / Joint Director (with PCIT/CIT approval for some categories). TIMING: notice issued for information; specified response time (typically 15-30 days). POWER LIMITS: (a) Cannot replace s. 268 inquiry mechanism for assessee-specific inquiry during pending assessment; (b) Sub-s. (1)(6) preserves CONFIDENTIALITY for certain information categories; (c) Self-incrimination protection (Constitutional Article 20(3)) preserved for individual assessees in certain situations.

CASE LAW

(i) Pannalal Binjraj v. UoI (SC, 1957) -- s. 133 powers liberal but constitutional limits. (ii) Various HC decisions on confidentiality of bank records / trust records. (iii) Practical: AIS / Form 26AS data largely populated via s. 133 framework with banks / SEBI / RBI.

PRACTITIONER NOTES

(i) RESPONSE COMPLIANCE -- comprehensive within 15-30 day window; non-response = penalty u/s 272A. (ii) PRIVILEGED COMMUNICATIONS -- attorney-client / CA-client privileged communications protected. (iii) THIRD-PARTY INFORMATION -- assessees may receive notice for INFORMATION ABOUT OTHERS (e.g., transactional party); cooperate carefully. (iv) BANK / FINANCIAL INSTITUTION COOPERATION -- standard; no objection from depositor required. (v) WRIT JURISDICTION -- if frivolous / fishing inquiry, writ available.

CROSS-REFERENCES

Section 247 -- Search and seizure (more invasive).
Section 253 -- Powers of survey.
Section 268 -- Inquiry before assessment (assessment-specific).
Section 254 -- Power to collect certain information.
Section 259 -- Power to call for information by prescribed authority.
Section 260 -- Faceless collection of information.
Section 272A -- Penalty for non-compliance.

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