Format of letter to it for release of frozen bank accounts

The Income Tax Officer,
______________

______________

Ref: ____________

PAN – ____________

A.Y. –____________

Sub – Application for Unfreeze of Bank Account. 

Respected Sir,

With due respect I would like to state that on processing of my income tax return for the AY 2017-18 Income Tax Department freeze my bank account (A/c No. xxxxxxxxxxxx of SBI Bank) due to the reason of outstanding tax liability as processed in intimation u/s 143(1), Which I have rectified and received rectification order dated 20^th January, 2021 via reference number CPC/1718/U4/xxxxxxxxx which shows that there is no demand and refund outstanding.  

Now as the issue is resolved I would request you to kindly unfreeze my above mentioned bank account at Annexure-I

We have also received rectification order dated 20^th January, 2021 via reference number CPC/1718/U4/xxxxxxxxxx which shows that there is no demand and refund outstanding. The copy of same is enclosed herewith at Annexure-II.

We therefore request your Good Self to consider the above facts and submissions and kindly unfreeze my abovementioned bank account.

Thanking You,

Yours truly,

Before using a format, identify the legal basis of the freeze. The remedy depends on it:

• Sec 132(3) restraint order (during search): valid only for 60 days from the date of the order (Sec 132(8A)). After that it lapses automatically. Write to the bank citing the lapse, with a copy to the Authorised Officer.

• Sec 281B provisional attachment: valid for 6 months, extendable by the PCIT to a maximum of 2 years. Release is available on furnishing a bank guarantee (Sec 281B(2), (5)) or on completion of assessment.

• Sec 226(3) garnishee notice (recovery of an existing demand): seek stay of demand, or pay 20% and seek stay pending appeal (CBDT Instruction 1914 / OMs on 20% stay).

• The letter should state:

– the PAN, AY, and date and section of the order

– that the account is needed for business operations (salary, GST, statutory dues)

– the security offered (FD lien, bank guarantee, other assets)

– a request for partial release for statutory payments.

Attach the bank statement and a list of statutory dues.

• Address it to the Authorised Officer / DDIT (Inv) (search) or the AO (assessment or recovery). Follow up on the e-filing grievance portal if there is no response.