Demonetisation twist-in-the-tail: IT department to issue statutory notice to non-respondents

Post the demonetisation tiff, the Income Tax department has ployed to issue a statutory notice to all the defaulters, who have failed to respond to its SMS or email probe, seeking an explanation on the bank deposits made, following 
implementation of demonetisation.    
 
The department is likely to issue a notice under Section 133(6) of the Income Tax Act to those who have failed to give a timely response online, despite the reminders. The procedure of issuing the notice, includes taking permission from either an officer or a commissioner or the directorate of the Income Tax department.  
 
The department has issued hundreds of queries on doubtful deposits, generating more than 18 lakh SMSs and emails, on every deposit over Rs 5 lakh, till December 30, 2016. Valid explanations of more than 9 lakh respondents to the 
department's queries were considered ‘accepted’ and the verification was closed.  
 
The notice to be issued under Section 133(6) gives the Income Tax department humongous powers to investigate and seek information even from outsiders, including the banks.