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April 2026

Provisional attachment of property — Powers u/s. 281B — Power must be exercised cautiously — Before attachment authorities must examine whether assessee is a regular taxpayer — Mere reliance on factors such as bank loans or hypothetical future demand is incorrect — Attachment without objective satisfaction is impermissible.

By Keshav Bhujle | Ritu Punjabi, Advocates
Reading Time 4 mins

3. ARL Infratech Limited vs. DCIT:

2026 (3) TMI 495 - Raj.:

A. Ys. 2021-22 to 2026-27: Date of order 06/03/2026:

S. 281B of ITA 1961:

Provisional attachment of property — Powers u/s. 281B — Power must be exercised cautiously — Before attachment authorities must examine whether assessee is a regular taxpayer — Mere reliance on factors such as bank loans or hypothetical future demand is incorrect — Attachment without objective satisfaction is impermissible.

A search was conducted at the premises of the assessee and assessment order was passed and on the basis of the appraisal report, Investigation Wing made an addition of ₹4.40 lakhs. The assessee filed an appeal before the CIT(A) which is pending.

The Assessing Officer issued notice u/s. 148 of the Act for A. Ys. 2021-22, 2022-23 and 2024-25 and on the basis of apprehension that demand of ₹1.30 crores may be created for A. Ys. 2022-23 and 2024-25, a provisional attachment order was passed by the Assessing Officer exercising powers u/s. 281B of the Income-tax Act, 1961 making a provisional attachment of the industrial plot which was owned by the assessee.

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