G.S. Singhvi, J. - (1.) THIS petition is directed against order Annexure P. 2, dated 17 -12 -1998, passed by the Income Tax Officer, Ward -2, Gurgaon, under section 281B of the Income Tax Act, 1961 (hereinafter referred to as 'the 1961 Act'), read with rules 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 dated 23 -3 -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 (hereinafter referred to as 'the 1894 Act'). Reference application filed by him under section 18 of the 1894 Act was disposed of by the Additional 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 section 281B on the ground that as on 17 -12 -1998, proceedings for the assessment or reassessment of his income were not pending before any of the authorities constituted under the Act.
(3.) WE have heard learned counsel for the parties and perused the record. Section 281B of the Act which provides for provisional attachment reads as under : "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 had escaped assessment, the assessing officer is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, he may, with the previous approval of the Chief Commissioner, Commissioner Director General, Director, by order in writing attach provisionally any property belonging to the assessee in the manner provided in the Second Schedule. Explanation : For the purposes of this sub -section, proceedings under sub -section (5) of section 132 shall be deemed to be proceedings for the assessment any income or for the assessment or reassessment of any income which has escaped assessment. (2) Every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under sub -section (1) : Provided that the Chief Commissioner, Commissioner, Director General or Director may for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as he thinks fit, so however, that the total period of extension shall not in any case exceed two years : Provided further that where the application for settlement under section 245C is made, the period commencing from the date on which such application is made and ending with the date on which an order under sub -section (i) of section 245D is made shall be excluded from the period specified in the preceding proviso." ;