Bank account freezed by income tax for cash deposit

Is the account linked to PAN numbers of all the account holders?

yes it is linked

Can you share any communication from IT department or Bank informing you about the freezing of account.

Deparment has not initiated any such action. But as per recently issued RBI directives, banks have started warning their customers to freeze their bank accounts if the Re-KYC is not completed immediately. (Even for older KYC complient customers)