Attachment of bank account:
Duty to form belief about undisclosed income:
No order under Section 132(3) of the Income Tax Act can be passed when the authorized officer is in doubt whether the asset is disclosed or undisclosed income.
When the authorized officer under the Income Tax Act is not satisfied or he has doubts to believe that the particular asset found on search is undisclosed property, he cannot have recourse to the provisions contained in sub-section (3) of Section 132 of the Income Tax Act.
[Sources: Om Prakash Jindal v. Union of India, 1976 (104) ITR 389 (P&H) Sriram Jaiswal vs. Union of India, 1989 (176) ITR 261 (All.).]
A prohibitory order issued under sub- section (3) of Section 132 of the Income Tax Act in respect of Current Account in question without forming any belief and/or without any material to conclude that the amount deposited in the said Current Account is either wholly or partly undisclosed income of the petitioner is unsustainable in law.