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1. By this writ petition, the petitioners seek to challenge the provisional attachment of their (i) bank account and F.D.Rs. with the State Bank of India and the American Express Bank, Bombay, (ii) office premises situated at Mehta House, Chowpaty, Bombay-400 007, and (iii) residential flat situated at Fionika, Walkeshwar, Bombay-400 006, by the Assistant Commissioner of Income-tax, Circle 7(2), Mumbai, under Section 281B of the Income-tax Act, 1961 ("the Act"), vide order dated April 5, 1999. The petitioners contend that the impugned orders of attachment under Section 281 B of the Act are unlawful, unconstitutional, ultra vires, without authority of law, passed without due application of mind and are patently bad in law, misconceived and vitiated. It is prayed that these orders be set aside and quashed.

2. We have heard learned counsel for the parties. Rule returnable after eight weeks. Respondents waive service.

3. Heard Mr. F. B. Andhyrajina, learned counsel for the petitioners, on the prayer for interim relief. Also heard Mr. R. V. Desai, learned counsel for the respondents. Mr. Desai was also heard on earlier occasion when the petitioners prayed for ad interim relief pending admission. At that time, we were told by Mr. Desai that the attachment of the immovable properties and the bank accounts of the petitioners had been done under Section 281B of the Act. He wanted time to obtain instructions. Thereafter, an affidavit of Shri P. Babaprasad, Joint Commissioner of Income-tax, Special Range-48, Mumbai, was filed wherein it was stated that as per the records, the total tax demand against the petitioners after finalisation of pending assessments was likely to be to the tune of Rs. 2.68 crores. In the said affidavit, the Joint Commissioner also furnished the details of the amounts lying with the bank, and the two premises which had been attached and their valuation. The'details are as follows :

4. On a perusal of the above affidavit, learned counsel for the petitioners contended before us that the value of the premises mentioned at items Nos. 3 and 4 in the list of attached properties was shown at Rs. 2.74 lakhs and Rs. 2.99 lakhs as against the actual market value of over Rs. 6 crores, only to justify attachment of bank accounts and F.D.Rs. It was further contended that the attachment in this case under Section 281B was illegal and without jurisdiction because the conditions precedent did not exist. It was stated that value of the immovable properties shown in the affidavit was ridiculously low. Learned counsel furnished a report of valuation of the two immovable properties attached by the Revenue made by Chawla Architects and Consultants Pvt. Ltd., who are approved valuers on June 17, 1999. As per the valuation report, the valuation of room No. 106, Mehta House, is-Rs. 1.60 crores and flat No. 6 in Fionika is Rs. 4.23 crores. According to learned counsel, even if attachment under Section 281B was justified, the attachment of the above two properties itself was more than sufficient. There was no need to attach the bank accounts and fixed deposits. According to him, the bank accounts and fixed deposits have been attached only with a view to harass the assessee. Such an attachment, learned counsel submits, is most arbitrary and illegal.

7. We have considered the suggestion of the Joint Commissioner of Income-tax. We are, however, not impressed by the same. Attachment has been made in this case under Section 281B of the Act which provides for provisional attachment only to protect the revenue in certain cases. This Section reads as follows :

"281B. Provisional attachment to protect revenue in certain cases.--(1) Where, during the pendency of any proceeding for the assessment of any income or for the assessment or reassessment of any income which has escaped assessment, the Assessing Officer is of the opinion that for the purpose of protecting the interest of the revenue it is necessary so to do, he may, with the previous approval of the Chief Commissioner, Commissioner, Director-General or Director, by order in writing, attach provision ally any property belonging to the assessee in the manner provided in the Second Schedule.