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CMA Final · Direct Tax Laws and International Taxation · Survey, Search and Seizure

Under section 247 of the Income-tax Act, 2025, an authorised officer serves an order on 12 March under clause (4)(b) restraining a company from dealing with its bank account, as seizure was not practicable for reasons other than weight or volume. Which statement is correct?

The order is not deemed to be a seizure, and it cannot stay in force for more than sixty days from the date of the order. The six-month validity applies only to provisional attachment of property, not to this restraint order.

  1. AThe order is deemed to be a seizure and can remain in force indefinitely
  2. BThe order is not deemed to be a seizure and cannot remain in force for more than sixty days from its dateCorrect
  3. CThe order is deemed to be a seizure but lapses after sixty days
  4. DThe order is not deemed to be a seizure and remains valid for six months from the end of March

Explanation

Section 247(4)(b)(ii) limits such an order to sixty days from the date of the order, and (iii) says serving it is not deemed to be seizure. The six-month period relates to provisional attachment under sub-section (8), not to this order.

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