2003 (1) TMI 54

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....a public limited company, registered under the Companies Act, engaged in the business of manufacture of paper and leasing of equipment. For the financial year 1994-95 (assessment year 1995-96), the petitioner-company had filed its return under section 139 of the Income-tax Act on November 22, 1995, and for the subsequent financial year 1995-96 (assessment year 1996-97), it had filed return on November 28, 1996. The Department initiated proceedings under section 132 of the Act and the Assessing Officer had passed an order under section 158BC of the Act. The said order was appealed before the Income-tax Appellate Tribunal. In the meantime, the question of refund to the petitioner-company arose for the various regular assessment years and the ....

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....ue, it is necessary to attach provisionally the refund due to you in the block assessment to the extent of Rs. 9,35,53,885. (Total refund Rs. 11,18,82,613- demand due for 1995-96 and 1996-97 consequent on revision of assets giving effect to the order under section 263 amounting to Rs. 1,83,28,728). Whereas the Commissioner of Income tax, Central-II, Chennai, by order in C. No. 1772/3/2002-03 C-II dated November 25, 2002, has approved the provisional attachment under section 281B of the Income-tax Act, 1961. Under the powers vested in me under section 281B of the Income-tax Act, 1961, I hereby attach provisionally the above mentioned refund due to you for the block assessment. This order is in force for a period of six months from the ....

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....oresaid period by such further period or periods as he thinks fit, so, however, that the total period of extension shall not in any case exceed two years: Provided further that where an application for settlement under section 245C is made, the period commencing from the date on which such application is made and ending with the date on which an order under sub-section (1) of section 245D is made shall be excluded from the period specified in the preceding proviso." There is no dispute that the initial order was under section 281B(1) and as per the provision contained in sub-section (2), such an order would have effect only for a period of six months from the date of the order. The proviso to section 281B(2) makes it clear that the pr....