TaxTMI 
TaxTMI 
2026 (9) TMI 1140
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....1988"), a challenge has been made to the order dated 01.05.2023 passed by the Adjudicating Authority confirming the Provisional Attachment Order ("PAO") while answering the references against the appellants herein. Brief facts of the case: 2. It is a case where a search was conducted by the Income Tax Department on 03.12.2021 at Sumangal Safe Deposit Vault LLP and jewellery worth of Rs. 1,07,33,434/- was found in the Locker No. F-727 registered in the name of the appellant, Parth Yoginbhai Patel. Summons under Section 131(1A) of the Income Tax Act, 1961 was issued and statement of the appellant, Shri Parth Yoginbhai Patel under Section 132(4) of the Income Tax Act, 1961 was recorded on 17.12.2021 wherein he stated that the locker was ....
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....that the provisional attachment of the property has been made in contravention of the provisions of the Act of 1988. It was specifically given out that while causing provisional attachment under sub-sections (3) & (4) of Section 24 of the Act of 1988. It was submitted that the proceedings for provisional attachment of the property can be initiated with a notice under sub-section (1) of Section 24 of the Act of 1988 to the benamidar. In the instant case, the respondent failed to issue a notice under sub-section (1) of Section 24 of the Act of 1988 prior to taking approval of the Approving Authority for causing provisional attachment of the property. For provisional attachment of the property, it is a condition precedent to have an approval o....
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....the Act of 1988 has already been issued and the matter is proceeded for provisional attachment of the property under sub-section (3) of Section 24 of the Act of 1988. In the instant case, the prior approval of the Approving Authority for provisional attachment of the property was prior to issuance of notice under sub-section (1) of Section 24 of the Act of 1988. Thus, on the aforesaid ground itself, impugned order deserves to be set-aside. 5. Ld. Counsel for the appellants raised further many legal and factual issues but prayed for disposal of the appeals in reference to the first legal issue raised by him. Arguments of the Ld. Counsel for the respondent: 6. Ld. Counsel for the respondent contested the appeals on all the grounds ra....
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....ct of 1988 mandates formation of an opinion that a person in possession of the property held benami may alienate the property during the period specified in the notice, the provisional attachment of the property can be caused with the prior approval of the Approving Authority. 8. It is a case where notice was issued under sub-section(1) of Section 24 of the Act of 1988 and on the same day the provisional attachment of the property was caused but it is without following the provisions of law in view of the fact that approval of the Approving Authority was taken prior to issuance of notice under sub-section(1) of Section 24 of the Act of 1988. Thus, action of the respondent was mechanical in nature as without issuing notice under sub-secti....