TaxTMI 
TaxTMI 
2026 (3) TMI 495
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....ome Tax Circle-II, Jaipur whereby, it has issued orders of provisional attachment of the petitioner's property. 2. Learned counsel for the petitioner had pointed out that the petitioner is engaged in the business of manufacturing of building materials such as cement sheets, cement pipe, AAC block, Metal Sheet and quartz slabs, etc. and has been paying regular income tax. 3. A table has been placed before the Court for assessment year 2021-22 to 2026-27, reflecting the income tax revenue paid to the tune of Rs. 45,43,61,618/- by the assessee. The petitioner has been obtaining credit facility from the HDFC Bank and industrial plot situated at A-201-202, Industrial Area, Bagru Extension, Phase-II, Bagru, Jaipur along with plant & machine....
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....rms of Office Memorandum dated 29.02.2016 which has been revised to 20%. He submits that while the petitioner could have deposited the amount of Rs.26,02,205/- as maximum amount against the demand, the property worth several crores has been attached. He submits that there was no reason or logic for issuing provisional attachment order and the same deserves to be quashed being unfair, arbitrary and illegal. It is a case of abuse of jurisdiction. He submits that the attachment action renders the Office Memorandums of 2016-2017 otiose and redundant. 6. Learned counsel further submits that upon examining the past record of the petitioner, there was no occasion to arrive at the conclusion of the so called strong possibility of non-payment of ....
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....n'ble Apex Court held as under: "72 For the above reasons, we hold and conclude that (i) The Joint Commissioner while ordering a provisional attachment under section 83 was acting as a delegate of the Commissioner in pursuance of the delegation effected under Section 5(3) and an appeal against the order of provisional attachment was not available under Section 107 (1); (ii) The writ petition before the High Court under Article 226 of the Constitution challenging the order of provisional attachment was maintainable; (iii) The High Court has erred in dismissing the writ petition on the ground that it was not maintainable; (iv) The power to order a provisional attachment of the property of the taxab....
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.... (a) An entitlement to submit objections on the ground that the property was or is not liable to attachment; and (b) An opportunity of being heard; There has been a breach of the mandatory requirement of Rule 159(5) and the Commissioner was clearly misconceived in law in coming into conclusion that he had a discretion on whether or not to grant an opportunity of being heard; (x) The Commissioner is duty bound to deal with the objections to the attachment by passing a reasoned order which must be communicated to the taxable person whose property is attached; (xi) A final order having been passed under Section 74(9), the proceedings under Section 74 are no longer pending as a result of which the provisional attachme....
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....chment, even if provisional, creates a sense of apprehension and fear in the minds of bankers who are giving loans to the concerned units for their businesses. Their public reputation is seriously hampered. Therefore, invoking of such provision has to be done by exercising great caution and care and so as not to harm the reputation of an honest income tax payer. 12. While Section 281B of the Act of 1961 gives unequivocal power to the authority to put the properties under attachment, the Hon'ble Apex Court has time and again held that such power has to be exercised by taking into consideration all the aspects as noticed in the case of Radha Krishan Industries (supra) and the contentions prescribed in the statute must be strictly fulfilled....