Provisional attachment under tax law requires recorded reasons and prior approval; mechanically issued notices may be sent back for reconsideration.

Provisional attachment under section 281B of the Income-tax Act must be based on recorded reasons and prior approval of the prescribed higher authority, because the measure is intended only to protect the Revenue during pending assessment or reassessment proceedings. Where notices are issued mechanically without reasons and without any indication of the required approval, the matter may be remitted for fresh consideration. Here, the notices were not finally quashed, but their operation was kept in abeyance and the Assessing Officer was directed to hear the petitioner and pass a reasoned order within the stipulated time.

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Issues: Whether the provisional attachment notices issued under section 281B of the Income-tax Act, 1961 were sustainable when the order disclosed no reasons and did not indicate prior approval by the competent authority.

Analysis: Section 281B permits provisional attachment during pending assessment or reassessment proceedings only for protecting the interests of the Revenue and requires previous approval of the prescribed higher authority. The notices were found to have been issued mechanically, without reasons recorded in the order and without any indication of the requisite approval. The matter was therefore sent back to the Assessing Officer for a reasoned decision after hearing the petitioner.

Outcome: The notices were not quashed finally, but their further operation was suspended pending reconsideration by the Assessing Officer, who was directed to pass a reasoned order within the time specified.

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