TEK CHAND Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS petition is directed against order Annexure P. 2, dt. 1st Dec., 1998, passed by the ITO, Ward -

(2.) , Gurgaon, under S. 281B of the IT Act, 1961 (for short 'the 1961 Act') r/w rr. 20, 22 and 26 of the Second Schedule appended to the Act for provisionally attaching the petitioner's FDR account in Oriental Bank of Commerce, Gurgaon. 2. A perusal of the record shows that by an award dt. 23rd March, 1993, the Land Acquisition Collector determined the amount of compensation payable to the petitioner in lieu of the acquisition of his land under the Land Acquisition Act, 1894 (for short, 'the 1894 Act'). Reference application filed by him under S. 18 of the 1894 Act was disposed of by the Addl. District Judge, Gurgaon, by awarding compensation at the rate of Rs. 265 per sq. yd. The petitioner and the State Government challenged the award passed by the reference Court by filing separate regular first appeal which are pending before this Court. During the pendency of the appeals, this Court directed the State Government to release 50 per cent of the enhanced compensation to the petitioner on his furnishing adequate security and remaining 50 per cent without such security. The petitioner deposited the amount released by the State Government in fixed deposit with the Oriental Bank of Commerce. The same has been provisionally attached by the respondent. The petitioner has questioned authority of the respondent to pass order under S. 281B on the ground that as on 1st Dec., 1998, proceedings for the assessment or reassessment of his income were not pending before any of the authorities constituted under the Act.

(3.) SEC . 281B of the Act which provides for provisional attachment reads as under :