Recovery Officer cannot attach Taxpayer’s OD Account with Banks by Exercising Power u/s 226(3) of Income Tax Act: Himachal Pradesh HC

The Himachal Pradesh High Court ruled that recovery officers under Section 226(3) of the Income Tax Act do not have the authority to attach a taxpayer’s overdraft (OD) account with banks. The case involved the attachment of an OD account for recovery purposes, which the court found to be outside the scope of the powers granted under the Income Tax Act. The ruling reinforces taxpayer protections and limits the power of tax authorities in attachment proceedings.