Disclosure of information regarding assessees [Section 138] under Powers of Income-tax Authorities [Sections 131 to 136] :

If a person makes an application in accordance with Rule 113 of the Income-tax Rules, 1962 to the Principal Chief Commissioner or Chief Commissioner or the Commissioner or Principal Commissioner of Income-tax in the prescribed form for obtaining any information relating to any assessee in respect of any assessment year, the Principal Commissioner or Commissioner may, if he is satisfied that it is in the public interest, furnish the information. His decision in this regard cannot be called into question. Nevertheless, the Government may, having regard to practice and usage customary or otherwise, and any other relevant factors, direct that no information or documents shall be furnished or produced by a public servant in respect of such matters relating to a particular class or classes of assessees except to certain authorities which may be specified. It would be observed that, under section 138, the Principal Commissioner or Commissioner can make a disclosure on the basis of an application made to him; he cannot volunteer to give the information.

Further, the Board has been empowered to furnish or cause to be furnished any information relating to any assessee in respect of assessment under the Income-tax Act, 1961, to any office or authority or body performing any function under any law relating to the imposition of any tax, duty or cess or dealings in foreign exchange in all cases where the Board considers such information necessary for the purpose of enabling the officer, authority or body to perform his or its functions under that law. This power of disclosure of information can as well be exercised by any other Income-tax authority specified by the Board by general or special order in this behalf. It will also be open to the Central Government to notify any officer, authority or body performing functions under any other law and on such notification, the Board or any other income-tax authority may furnish or cause to be furnished similar information relating to any assessee to the officer, authority or body concerned.