Provisional attachment under section 281B cannot survive beyond the statutory maximum period, requiring release of attached deposits.

A provisional attachment under section 281B of the Income-tax Act cannot continue beyond the maximum statutory period, including any extension allowed under the provision. Once that outer limit expires, the attachment ceases to operate and the attached bank deposits must be released, subject to retention of any amount necessary to protect the existing tax demand as on that date. The court treated expiry of the statutory period as decisive and found it unnecessary to examine further objections about communication of extension orders or recording of reasons.

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Issues: Whether the attachment made under section 281B of the Income-tax Act, 1961 could continue beyond the maximum permissible period and, if not, whether the attached bank deposits were liable to be released.

Analysis: The order of provisional attachment under section 281B is subject to a limited statutory duration, and the period for which extension can be granted under the provision had already expired. In view of the outer limit prescribed by law, the attachment could not survive beyond the date on which the maximum period came to an end. The court found it unnecessary to examine the further objections regarding communication of extension orders or recording of reasons.

Conclusion: The attachment under section 281B had ceased to be operative after expiry of the statutory maximum period, and the petitioner was entitled to withdraw the amounts, subject to retention of any amount equal to tax demand due as on that date.

Final Conclusion: The writ petition succeeded to the extent that the provisional attachment was held unenforceable after the statutory period and the petitioner obtained release of the balance amount after safeguarding any existing tax demand.

Ratio Decidendi: A provisional attachment under section 281B cannot continue beyond the maximum period permitted by the statute, and once that period expires the attachment must cease to operate.

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