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2016 (3) TMI 687 - HC - Income TaxAttachment orders - Rectification Application under Section 154 - Held that:- The action of the Assessing Officer in attaching the petitioners' bank accounts under Section 226(3) of the Act as well as subsequent withdrawal of the attached amounts from the bank accounts is without jurisdiction and bad in law. The petitioners have a statutory right to its stay application being heard and disposed of before the Revenue can adopt any coercive proceedings on the basis of the Notice of demand under Section 156 of the Act issued to the assessee. This action on the part of the Assessing Officer, if permitted, would lead Section 220(6) of the Act becoming redundant. In the above view, the Notice under Section 226(3) of the Act issued by the Assessing Officer to the petitioners' bankers are quashed and set aside. Further, the Assessing Officer is directed to deposit the amount of ₹ 7,59,185/in HDFC Bank, Fort, Mumbai and ₹ 34,265/in State Bank of India, Byculla, Mumbai within a period of one week from today. The Assessing Officer to dispose of the petitioners' pending stay application in accordance with law.
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