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Section 138, read with section 137 [Corresponding to section 54 of the Indian Income-tax Act, 1922] of the Income-tax Act, 1961 - Information respecting assessee, disclosure of - Assessment years 1956-57 to 1970-71 - Whether privilege against disclosing of any information relating to assessment orders summoned by court existed till 1-4-1964 and not thereafter - Held, yes FACTS In a partition suit filed by the respondent/plaintiffs against the petitioners/defendants at the instance of the plaintiffs, the income-tax returns and assessment ordersin respects of the assessment years 1956-57 to 1970-71 were summoned by the Trial Court and the income-tax department produced them. Despite the defendants' objection, the Court held that those documents could be marked as exhibits. On revision petition, the petitioners contended (a) that though section 137 of the 1961 Act which replaced section 54 of the 1922 Act, prohibiting disclosure of information relating income-tax assessments was omitted now under the Finance Act, 1964, however, the Finance Act amended section 138 of the 1961 Act, and under amended section 138(1), it is only the Commissioner who can disclose any information relating to any assessee in respect of any assessment made either under the 1961 Act or under the 1922 Act, if an application is made and he is satisfied that it is in the public interest so to do and therefore, the documents, now brought to the Court without express permission of the Commissioner could not be marked in evidence. As the matter had not been dealt with previously and the question involved was an important one, the revision petition was referred to the Division Bench for an authoritative pronouncement. HELD (PER DIVISION BENCH) A plain reading of the provisions starting with section 54 of the 1922 Act and resting with the present section 138 of the 1961 Act clearly shows that there is now no more an embargo on a court from requiring any public servant to produce before it any record relating to an assessment or to give evidence before it in respect thereof. It is true that as and from 1-4-1964, while this embargo has disappeared, a new provision has come into being which enables a…

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