Under the Income Tax Act there are various provisions which empower the
Tax Authorities to collect information for the purpose of assessment
proceedings under this Act.
These powers are given in Section 131, Section 132 , Section 133, Section
133A, Section 133B, Section 134 and Section 135 etc .
Collection of information under these sections may be for a particular Assessee
or related to any assessment proceeding but I am not going to discuss that ‘when
can these powers be exercised by the Authority and how ? ‘ Instead of
discussing when & how , I would like to discuss that what type of information is collected or which type of
transactions are being watched by the Department.
Information is collected either directly from the assesse through
furnishing of certain data in ITR or indirectly through certain
agency/department (like banks, Registrar etc) which are transacting with such
data or having control over such data.