Bank B has received a notice from Recovery Officer of DRT attaching the balance lying in current account of XYZ Pvt. Ltd.
-
The bank will ignore the notice as such authority is not vested with Recovery Officer of DRT.
-
The bank will inform the Recovery Officer that his order cannot be complied with as he has no such authority.
-
The bank will follow the order as Recovery Officer can issue such order similar to the one given u/s 226 of Income Tax Act.
-
The bank will follow the order because the recovery of due amount of some other bank is involved.
Section - 226, Income Tax Act, 1961-2014
(3) (i) The 11[Assessing] Officer 12 [or Tax Recovery Officer] may, at any time or from time to time, by notice in writing require any person from whom money is due or may become due to the assessee or any person who holds or may subsequently hold money, for or on account of the assessee to pay to the Assessing Officer or Tax Recovery Officer either forthwith upon the money becoming due or being held or at or within the time specified in the notice (not being before the money becomes due or is held) so much of the money as is sufficient to pay the amount due by the assessee in respect of arrears or the whole of the money when it is equal to or less than that amount.
(iv) Save as otherwise provided in this sub-section, every person to whom a notice is issued under this sub-section shall be bound to comply with such notice, and, in particular, where any such notice is issued to a post office, banking company or an insurer, it shall not be necessary for any pass book, deposit receipt, policy or any other document to be produced for the purpose of any entry, endorsement or the like being made before payment is made, notwithstanding any rule, practice or requirement to the contrary.