Scope of Sec.281B. - Income Tax - 1884/1991

INSTRUCTION NO. 1884/1991 Dated: June 7, 1991 Section 281B was inserted in the Income-tax Act, 1961 with effect from 1-10-1975 in order to protect the interest of revenue in cases where the raising of demand is likely to take time because of investigations and there is apprehension that the assessee may thwart the ultimate collection of demand. 2. The section provides that where, during the pendency of any proceeding for assessment or reassessment of any income including the proceedings under section 132(5) of Income-tax Act, the Assessing Officer is of the opinion that for the purpose of protecting the interest of the revenue it is necessary so to do, he may, with the previous approval of the Chief Commissioner/Commissioner of Income-tax, by an order in writing, attach provisionally any property belonging to the assessee in the manner provided in the Second Schedule. The attachment is valid for 6 months from the date of order of attachment. This period of 6 months can be extended by the Chief Commissioner/Commissioner by a maximum period of 2 years. 3. The Board desire that the Assessing Officers should always bear in mind the provisions of the aforesaid section and resort to provisional attachment in all suitable cases. 4. These instructions may be brought to the notice of all officers in your region.