Bank Account Attachment Quashed Because Tax Liability of Company Cannot Be Imposed on Director’s Wife

Manjulaben Mafatlal Shah Vs Tax Recovery Officer-3 (Bombay High Court) The writ petition was filed challenging the notice dated 27 May 2024 issued under Section 226(3) of the Income Tax Act, 1961 by the Tax Recovery Officer. Through the impugned notice, the Branch Manager of Bank of Baroda was directed to transfer the money lying in the petitioner’s bank account to the Income Tax Department, effectively attaching the petitioner’s bank account. The petitioner contended that although she was the wife of a Director of Shri Ram Tubes Private Limited, she had no connection with the company. She...