Attachment of Bank Account--Attachment Without Formation of Opinion and Proper Notice Violates Article 300A Right to Property
Provisional attachment of a bank account under tax law is a drastic power and must be exercised strictly in accordance with statutory requirements. Formation of opinion based on tangible material is a mandatory pre-condition before ordering attachment. Attachment effected without such opinion, without proper notice, and without considering alternate security offered by the assessee, violates the right to property guaranteed under Article 300A of the Constitution. Continuation of such unlawful attachment for an extended period, causing standstill of business, amounts to serious civil prejudice and cannot be sustained.
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