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2014 (2) TMI 849 - HC - Income TaxAttachment and recovery of amount from PPF account u/s 226(6) of the Act – Held that:- Considering the benevolent provisions of the PPF Act, 1968 and taking harmonious construction of the relevant provisions of the PPF Act read with the provisions of the Civil Procedure Code and the provisions contained in the Income-tax Act, 1961 for recovery of the tax dues, it clearly emerges that as long as an amount remains invested in a PPF account of an individual, the same would be immune from attachment from recovery of the tax dues - The situation may change as and when such amount is withdrawn and paid over to the subscriber, which is not the situation in the present case - the clarification issued by the CBDT does not take into account the provisions of Rule 10 of the Second Schedule to the Income-tax Act, 1961 and the provisions of Section 60(1) of the Code of Civil Procedure - The said clarification is contrary to such statutory provisions – thus, the action of revenue of attaching and withdrawing the sum of PPF account is set aside – Decided in favour of Assessee.
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