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2015 (2) TMI 726 - HC - Income TaxAttachment of the property - order passed by the second respondent under section 281B - Held that:- Even to make a provisional attachment of the property of the assessee, there should be a notice to pay the arrears as per rule 51 of the Second Schedule, Part III, of the Income-tax Act. Without any notice to the assessee, the provisional attachment cannot be made under section 281B of the Act. In fact, in the judgment reported in KDH Properties P. Ltd. v. Asst. CIT [2013 (4) TMI 451 - MADRAS HIGH COURT] relied upon by the respondent itself, it has been held that the provisional attachment made in terms of section 281B should stand the test of reasonableness and avoid arbitrariness. In the instant case, this court finds that without any notice of demand to pay arrears, the respondent has passed an order for provisional attachment in arbitrary manner. Thus in the absence of any notice of demand or notice under section 156 of the Act, the petitioner cannot be termed as "assessee in default" or "assessee deemed to be in default". Similarly, in the absence of any notice to pay the arrears of tax as per rule 51 of the Second Schedule, Part III, of the Act, there cannot be any provisional attachment under section 281B of the Act. - Decided in favour of assessee.
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