2001 (5) TMI 28

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....etition is directed against an order annexure P-2 dated December 1, 1998, passed by the Income-tax Officer, Ward-2, Gurgaon, under section 281B of the Income-tax Act, 1961 (for short "the 1961 Act"), read with rules 20, 22 and 26 of the Second Schedule appended to the Act for provisionally attaching the petitioner's FDR account in the Oriental Bank of Commerce, Gurgaon. A perusal of the record ....

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....remaining 50 per cent. without such security. The petitioner deposited the amount released by the State Government in a fixed deposit with the Oriental Bank of Commerce. The same has been provisionally attached by the respondent. The petitioner has questioned the authority of the respondent to pass the order under section 281B on the ground that as on December 1, 1998, proceedings for the asses....

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....y so to do, he may, with the previous approval of the Chief Commissioner, Commissioner, Director-General or Director, by order in writing, attach provisionally any property belonging to the assessee in the manner provided in the Second Schedule. Explanation.-For the purposes of this sub-section, proceedings under sub-section (5) of section 132 shall be deemed to be proceedings for the assessmen....

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....is made shall be excluded from the period specified in the preceding proviso." A reading of the provisions quoted above shows that an order of provisional attachment passed under section 281B(1) ceases to operate after the expiry of six months from the date of the order. However, under the first proviso to section 281B(2), the Chief Commissioner, Commissioner, Director-General or Director can e....