Cash Credit Accounts cannot be attached u/s 226(3) of the Act as ...

Customers' Cash Credit Accounts not attachable for tax recovery as banks aren't debtors.

Case Laws Income Tax

October 11, 2024

Cash Credit Accounts cannot be attached u/s 226(3) of the Act as there is no relationship of 'debtor and creditor' between the bank and the customer. In a Cash Credit facility, the bank provides an overdraft limit for the customer to utilize, and interest is charged on the amount utilized. The bank does not hold any money belonging to the customer, nor does it owe any debt to the customer. The Cash Credit limit is merely a facility extended by the bank, and the amount cannot be attached as the bank is not a 'debtor' to the customer. The orders of attachment passed by the authorities are beyond the powers conferred u/s 226(3) and are liable to be quashed.

View Source

← Previous Next →

Cash Credit Accounts cannot be attached u/s 226(3) of the Act as ...

Customers' Cash Credit Accounts not attachable for tax recovery as banks aren't debtors.

Case Laws Income Tax

October 11, 2024

You may also like:

Provisional attachment of other accounts of petitioner alongwith the cash credit account - As the PAN Card number is common, no sooner the authority concerned instructed...

The assessee's unexplained cash credits u/s 68 were deleted by the CIT(A) after accepting the submissions that the cash receipts from various sources like cash sales,...

Unexplained cash credit - addition of cash deposit in bank account - It is important to mention here that the bank statements cannot be termed as books of accounts for...

Corporate debtor's account correctly declared as non-performing asset (NPA) due to failure to renew cash credit facilities and provide required financial documents for...

Sections 132B, 140A, 153A and 234B of the Income Tax Act, 1961 were analyzed regarding adjustment of seized cash against tax liability. The appellants claimed that cash...

Addition u/s 40A(3) - cash payment in excess of prescribed limit - Genuineness or otherwise of payment is not a criteria to exclude cash payment in excess of prescribed...

Addition u/s 68 - unexplained cash deposited in bank accounts - Bank account / statement as books - an addition made in respect of a cash deposit in the bank account of...

Taxability of the credits appearing in the bank account of the assessee with ICICI Bank - before the ld. CIT(A) no confirmations from the parties from whom advance was...

Unexplained cash deposits in bank - receipt of rental deposits in cash - The fact remains that the cash rental deposits have been received by the assessee which is not...

Addition u/s 68 v/s 69 - unexplained deposit in the bank account - sum was not credited in the books of accounts, but the amount was found credited in the bank account...

Attachment of Bank Accounts including cash credit account - when no amount lying in the cash credit account belongs to the petitioner, the question of attaching such...

Restriction on having current account with other banks if that customer already had credit facilities in the form of Cash Credit/Export Packing Credit (CC/EPC) in the...

Unexplained cash deposits - Deposits in regular bank account of the assessee, during demonetization period - the assessee was maintaining complete stock tally, the sales...

Unexplained cash deposits in Bank account - The explanation given by assessee cannot be simply rejected when he states that he encashed the traveler cheques and...

Seeking lifting of attachment on Bank Accounts of Directors - recovery of dues of the company, while the bank accounts of Directors were attached - The attachment on the...

Quick Updates: