The Income tax department can issue summons under section 131(1A) which gives powers given to the income-tax authorities under section 131(1) are powers of the court of law. While exercising these powers, the income-tax authorities act in a quasi-judicial capacity. These powers must be exercise drastically for the purposes set out in section 131(1) of the Act and not for any extraneous purposes. The powers under section 131 can be exercised only if proceedings are pending before the authority concerned under the Income-tax Act. The same is the position under the Wealth-tax Act and the Gift-tax Act.
In this they will ask Assessee to produce needed books of accounts or documents and not to leave the place until receive permission from commissioner of Income tax. Omit to attend or produce documents will attract a fine Up to Rs.10000.00 may be imposed under section 272A(1)(c) of the Income Tax Act 1961.
Documents may be asked will be ITR filed, Bank statement or any other relevant documents.
Some powers are to be exercised, e.g. under section 131 (1-A), where there is reason to suspect that any income has been concealed or is likely to be concealed “by any person or class of persons”. In this context, “class of persons” must mean a class of persons whose coherence as a class is related to the Act. The quoted words do not cover a class between whom and this Act the link is too remote to make the class coherent for the purposes of this Act. To take an example, Indian citizens may be treated as a “class of persons”; but surely not for the purpose of section 131(1-A) of the Act.