Income Tax Section 131 Summons: What to Do When You Are Called In

Source: Section 131, Income Tax Act, 1961.

• •During scrutiny assessment: The officer wants to examine you on oath about specific transactions or entries in your return. This is more intensive than a written query.
• •During investigation: Your name has come up in a survey, search, or investigation at another person's or entity's premises and the officer wants your statement.
• •Third-party summons: The officer is examining you as a witness about transactions with a third party under investigation. You are not the subject of the investigation.
• •Survey proceedings under Section 133A: After a survey at your business, the officer wants to examine specific persons in the organisation.
• •High-value transaction enquiry: The officer wants a personal explanation about a large or unusual transaction that appears in your AIS.

• •Do not go alone: Engage a CA or tax advocate and have them accompany you as your authorised representative. Under Section 288 of the IT Act, you can be represented by a CA or advocate.
• •Review the summons carefully: It will specify what documents to bring and (sometimes) the specific issues to be examined. Prepare these thoroughly.
• •Know what you are going to say: Discuss with your CA what answers are appropriate for the likely questions. If you do not know the answer to a question, say so.
• •Be truthful: You are being examined on oath. False statements constitute perjury, which is a criminal offence under Section 193 of the Indian Penal Code.
• •Take notes: During the examination, ask for a copy of the statement recorded. Everything that is recorded becomes part of the official proceedings.
• •Do not bring more than what is asked: If the summons asks for three years of bank statements, bring those. Additional records that were not asked for may open new avenues of enquiry.

• •Criminal offence under Section 131(1A): Wilful failure to comply with a summons or produce documents is an offence punishable with up to 1 year imprisonment and/or fine.
• •The officer can proceed ex-parte: The examination or assessment proceeds without your participation, typically in the most unfavourable manner.
• •Prosecution under Section 276: Separately from Section 131(1A), persistent defiance of summons can result in prosecution.
• •If you cannot appear on the scheduled date: Write immediately to the officer requesting a postponement with a specific reason. Officers generally accommodate genuine circumstances.