Attachment of account under section 143(3) of Income Tax Act

As per s. 281B, Officer can attach provisionally with prior approval of higher authorities.

During the pendency of any proceeding for the Assessment of any income, if the Assessing Officer is of the opinion that for the purpose of protecting the interests of revenue, it is necessary to do so, he may then attach provisionally any property belonging to the assessee u/s 281B of the Income Tax Act.

The assessing officer has to take the prior approval of the Chief Commissioner, Director General or Director before issuing the order for attachment.

As there is no existing tax liability, the chances of attachment during the assessment proceedings u/s 143(3) are generally very rare. If any serious issues are involved, the assessee may pay additional tax as self assessment tax to avoid the embarrassment of attachment.

The provisional attachment order must be in writing and should have reasons and must be

passed with the approval of the higher authority viz Chief CIT, CIT or Director General or

Director of Income Tax, the mechanical order without any reasons are liable to be quashed.

Gaurav Goel v. CIT

Yes the IT Officer with prior approval of Addl/Chief Commissioner can provisionally attach the assets and Bank Accounts if he has reason to believe according to the material available that tax liability will arise.