TaxTMI 
TaxTMI 
2026 (7) TMI 1221
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....he assessee. 2. The learned Authorised Representative of the Assessee has submitted that the deposit in the bank account represents the turnover of the assessee which were already declared in the return of income however, the Assessing Officer has assessed the entire deposit as income of the assessee. He has further submitted that the Assessing Officer has attached the bank account of the assessee by issuing notice u/sec.226(3) of the Income Tax Act [in short "the Act"], 1961 without prior intimation to the assessee or serving a copy of the said attachment notice to the assessee. Thus, the action of the Assessing Officer is not sustainable in law. He has further submitted that the assessee has a good prima facie case on merits as the Ass....
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....very or release of attachment of the bank account. 4. We have considered the rival submissions as well as relevant material on record. At the outset we note that the appeal of the assessee is listed for hearing on 30.06.2026 and the learned Authorised Representative of the Assessee has undertaken to argue the appeal on the said date without any adjournment. Accordingly, we direct the parties not to take any adjournment of hearing of the appeal of the assessee fixed for hearing on 30.06.2026. Further the Assessing Officer has attached the bank account of the assessee by issuing notice u/sec.226(3) of the Act though the alleged notice were issued by the Assessing Officer in the month of March, 2025 however, the learned Authorised Represent....
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....ara nos.9 to 12 as under: "9. Now, the question is whether it was proper on the past of the Assessing Officer to attach and debit a sum without serving a copy of the notice of attachment on the assessee, Looking at the language of section 226(3)(iii) of the Act which stipulates that "A copy of the notice shall be forwarded to the assessee at his last address known to the (Assessing) Officer ...." the answer has to be in the negative. The argument on behalf of the Revenue that actual service of the notice of attachment is not necessary cannot be accepted since the use of the word "shall" in section 226(3)(iii) mandates that such notice has to he served before action is taken. I recourse is not taken by the Revenue to the mode postul....
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.... in the affidavits, I find that the said respondent did not exercise his discretion judiciously rather there was total nonapplication of mind. 11. It is also to be noted, as evident from the affidavit filed by respondent No. 4 bank, that the attachment notice issued was withdrawn on March 22, 2010 pursuant to the notice dated March 17, 2010 issued by the Income-tax authority, It has been stated in paragraph 27 of the affidavit-in-opposition filed by the said respondent that it was withdrawn pursuant to the orders of the hon'ble court. Records have been perused by the learned advocates for the parties. I have gone through the orders passed on February, 25, 2010, March 7 2010, April 9, 2010 and May 11, 2010. I find no such order ....