In plain words: to protect revenue during an investigation, the income tax department can provisionally attach your property under Section 281B.
What Section 281B allows
During the pendency of assessment or reassessment, the officer (with approval) can provisionally attach property — including bank accounts — where it is necessary to protect the interests of revenue.
The impact
Like other attachments, a frozen account or property can disrupt business and finances — so it is keenly contested.
The limits and safeguards
- It requires that attachment is necessary to protect revenue, with approval.
- It is time-limited (it ceases after the prescribed period unless extended).
- It must be reasoned and proportionate.
- Courts require it to be used sparingly, not mechanically.
How to respond
- Seek the reasons for attachment.
- Offer alternative security to free operational accounts.
- Argue lack of necessity or proportionality.
- Consider a writ petition against an excessive attachment.
The guiding principle
Provisional attachment is a drastic, protective measure — not a recovery or coercion tool. A mechanical or disproportionate attachment can be set aside.
Frequently asked questions
Can the department freeze my property during assessment? Yes — by provisional attachment under Section 281B to protect revenue.
Is it permanent? No — it is time-limited and must be reasoned and proportionate.
Can I contest it? Yes — offer security, argue lack of necessity, or file a writ.
How Vakil Help Desk helps
Vakil Help Desk advises on income-tax searches and surveys, Section 148/148A reassessment notices, search assessments, penalty and prosecution — and represents clients before the tax authorities, CIT(A), the ITAT and the High Courts. If you are facing a raid, a notice or a reassessment, we can help you respond correctly.
This article is for general legal awareness, not individual legal advice. Income-tax search, seizure and reassessment law, the time limits and the procedure are revised by the Finance Acts and clarified by the courts from time to time, and the right step depends on your facts and the current position. Please consult a professional before responding to a search, notice or reassessment.