Amendment of section 281B
70. In section 281B of the Income-tax Act, in sub-section (2), with effect from the 1st day of October, 2014,––
(i) in the first proviso, for the words “two years”, the words “two years or sixty days after the date of order of assessment or reassessment, whichever is later” shall be inserted;
(ii) the second and third proviso shall be omitted.
Notes on Clauses:
Clause 70 of the Bill seeks to amend section 281B of the Income-tax Act relating to provisional attachment to protect revenue in certain cases.
The exiting provisions of sub-section (1) of the aforesaid section provide that the Assessing Officer, during the pendency of any proceeding for assessment or reassessment, in order to protect the interests of revenue may, with the previous approval of the Chief Commissioner or Commissioner, attach provisionally any property belonging to the assessee in the manner provided in the Second Schedule. Sub-section (2) of the said section provides that the provisional attachment shall cease to have effect after the expiry of six months provided that the Chief Commissioner or Commissioner may extend the period upto a total period of two years.
It is proposed to amend sub-section (2) of the said section so as to provide that the provisional attachment shall cease to have effect after the expiry of six months provided that the Chief Commissioner or Commissioner may extend the period up to a total period of two years or sixty days after the date of assessment or reassessment, whichever is later.
This amendment will take effect from 1st October, 2014.
