Recovery Officer cannot attach Taxpayer’s OD Account with Banks by Exercising Power u/s 226(3) of Income Tax Act: Himachal Pradesh HC [Read Order]
The bench observed that “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 attract the interest to be charged for the same so utilized and, therefore, the amount cannot be attached in terms of Section 226(3) of the Act”
The Himachal Pradesh High Court recovery officer cannot attach taxpayer’s over draft account with banks by exercising powers under section 226(3) of Income Tax Act,1961. The High Court clarified that bank does not become a debtor to its customers and cannot hold money for account of its customers merely because it has provided a facility…
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