Section 281B of Income Tax Act "Provisional attachment to protect revenue in certain cases"
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 Principal
Chief Commissioner or Chief Commissioner, Principal
Commissioner or Commissioner, Principal Director General or
Director General or Principal Director or Director, by order
in writing, attach provisionally any property belonging to
the assessee in the manner provided in the Second Schedule.
Explanation.-[***]
(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 Principal Chief Commissioner or Chief
Commissioner, Principal Commissioner or Commissioner,
Principal Director General or Director General or Principal
Director 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
or sixty days after the date of order of assessment or
reassessment, whichever is later.
(3) Where the assessee furnishes a guarantee from a
scheduled bank for an amount not less than the fair market
value of the property provisionally attached under
sub-section (1), the Assessing Officer shall, by an order in
writing, revoke such attachment:
Provided that where the Assessing Officer is satisfied that
a guarantee from a scheduled bank for an amount lower than
the fair market value of the property is sufficient to
protect the interests of the revenue, he may accept such
guarantee and revoke the attachment.
(4) The Assessing Officer may, for the purposes of
determining the value of the property provisionally attached
under sub-section (1), make a reference to the Valuation
Officer referred to in section 142A, who shall estimate the
fair market value of the property in the manner provided
under that section and submit a report of the estimate to
the Assessing Officer within a period of thirty days from
the date of receipt of such reference.
(5) An order revoking the provisional attachment under
sub-section (3) shall be made-
(i) within forty-five days from the date of receipt of the
guarantee, where a reference to the Valuation Officer has
been made under sub-section (4); or
(ii) within fifteen days from the date of receipt of
guarantee in any other case.
(6) Where a notice of demand specifying a sum payable is
served upon the assessee and the assessee fails to pay that
sum within the time specified in the notice of demand, the
Assessing Officer may invoke the guarantee furnished under
sub-section (3), wholly or in part, to recover the amount.
(7) The Assessing Officer shall, in the interests of the
revenue, invoke the bank guarantee, if the assessee fails to
renew the guarantee referred to in sub-section (3), or fails
to furnish a new guarantee from a scheduled bank for an
equal amount, fifteen days before the expiry of the
guarantee referred to in sub-section (3).
(8) The amount realised by invoking the guarantee referred
to in sub-section (3) shall be adjusted against the existing
demand which is payable by the assessee and the balance
amount, if any, shall be deposited in the Personal Deposit
Account of the Principal Commissioner or Commissioner in the
branch of the Reserve Bank of India or the State Bank of
India or of its subsidiaries or any bank as may be appointed
by the Reserve Bank of India as its agent under the
provisions of sub-section (1) of section 45 of the Reserve
Bank of India Act, 1934 (2 of 1934) at the place where the
office of the Principal Commissioner or Commissioner is
situate.
(9) Where the Assessing Officer is satisfied that the
guarantee referred to in sub-section (3) is not required any
more to protect the interests of the revenue, he shall
release that guarantee forthwith.
Explanation.-For the purposes of this section, the
expression "scheduled bank" shall mean a bank included in
the Second Schedule to the Reserve Bank of India Act, 1934
(2 of 1934).
282. (1) The service of a notice or summon or requisition
or order or any other communication under this Act
(hereafter in this section referred to as "communication")
may be made by delivering or transmitting a copy thereof, to
the person therein named,-
(a) by post or by such courier services as may be approved
by the Board; or
(b) in such manner as provided under the Code of Civil
Procedure, 1908 (5 of 1908) for the purposes of service of
summons; or
(c) in the form of any electronic record as provided in
Chapter IV of the Information Technology Act, 2000 (21 of
2000); or
(d) by any other means of transmission of documents as
provided by rules made by the Board in this behalf.
(2) The Board may make rules providing for the addresses
(including the address for electronic mail or electronic
mail message) to which the communication referred to in
sub-section (1) may be delivered or transmitted to the
person therein named.
Explanation.-For the purposes of this section, the
expressions "electronic mail" and "electronic mail message"
shall have the meanings as assigned to them in Explanation
to section 66A of the Information Technology Act, 2000 (21
of 2000).