TMI Blog2013 (10) TMI 1534X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 3 herein, on expeditious basis. The sheet anchor of the arguments advanced on behalf of the petitioner is that the authorities while invoking the provisions contained under Section 226(3) of the Income Tax Act, 1961 cannot pass an order of attachment of the Cash Credit Account, which has not been utilized and/or availed of as yet. In support of the aforesaid contention the reliance is placed upon a judgement of Madras High Court in case of K. M. Adam vs. The Income-tax Officer, 2nd Addl. II Circle, Madras reported in AIR 1958 Madras 181. The learned advocate appearing for the respondent authorities, however, submits that the petitioner is not co-operating with the Appellate Authority for early disposal of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... late Authority for stay of the demand nor has approached the Assessing Authority under Section 220 (6) of the said Act to treat him as non-defaulter. Amidst pendency of the appeal, the authority in absence of an order of stay has initiated the recovery proceeding and has proceeded to pass an order of attachment of the Cash Credit Account. It has been brought to the notice of this Court that the petitioner proposed to pay the amount so assessed by the Assessing Officer in instalments without prejudice to his rights under the statutory appeal and paid the first instalment in July, 2013. The petitioner did not pay thereafter any instalment. The authorities have proceeded to pass an order of attachment of the Cash Credit Accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stomer or holds the money for account of its customer in these words : I do not think it is worthwhile pursuing this theory any further. In my judgment when a Bank lends money on overdraft and the customer is always in debit there is no stage at which the Bank is a debtor to its customer, nor any point of time at which it holds any money of his on his account. S. 46 (5-A) of the Act cannot on any construction be intended as a credit freeze, with this feature superadded, that if there was any thawing, the resultant credit released became immediately payable to the department. The Cash Credit limit is a facility provided by the Bank to its customers to use and utilize the money; and if such facility availed of, it would at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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