being a banker I am to ask one of my customer is availing cc limit of RS.4.00crs along with LC limit of rs.1.00crs total exposure 5.00crs.both limited are almost fully utilized .nw we got a notice from income tax Dept to freeze all acts in the name of partners and firm due to income tax not paid by borrower.on asking from ITO he said the partner has made huge turnover in any other bank account maintained in another name of firm separate from our branch firm but tax not paid against high sales .we put the cc account with our branch on hold of RS.26 crs as per notice of income tax. few days back one entry of RS.95lacs credited in Cc act with us through clearing..and the same is known to ito office and now demanding the amount of RS.95las.
tell me .can we trf funds to ito deptt if we do so then cc act will irregular bcoz cc act funds must b met for business purpose and few LC payments are also getting due in this month only.all business cycle of firm can hamper..please advise he to proceed in this matter as a banker
