section 281b of the income tax act, 1961

Hello Group Members,


One of my client is supposed to face the Provisional Attachment as laid down in Section 281B of IT Act, 1961. If any one has any information/artilce/judgement which might be useful, please post the same.

Yours truly,

Mitesh Shah

M.Com., LL.B.,




Section 281B


(1) Where, during the pendency of any proceeding for the assessment of any income or for the assessment or reassessment of any income which has escaped assessment, the Assessing Officer is of the opinion that for the purpose of protecting the interests of the revenue it is necessary 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 assessment of any income or for the assessment or reassessment of any income which has escaped assessment.

(2) Every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section (1) :

Provided that the Chief Commissioner, Commissioner, Director-General or Director may, for reasons to be recorded in writing, extend the aforesaid 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.


refer the case

gandhi trading Vs Asst. comm. of income tax


the attachment order was iniated against a customer of a bank on 24.3.2004 as per section 281 B of IT Act 1961.It was revoked vide IT letter to the bank on 23.01.2008 as per section 226.
should the attachment order become null and void after two years from 24.03.2004 as per sub sections of sec 281B in absense of any communication from IT authorities or the date of revoking the order be taken as 23.01.2008.




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