The assessee filed writ against the garnishee proceedings u/s 226(3)(iii)  of the Act .The single judge disposed of it directing the appellate authority to consider and pass orders on appeal within three months. On appeal  the Court held that  the Assessing Officer had to conduct an enquiry into the factual situation with respect to the activities of the society, in order to satisfy himself as to the conclusions arrived at and also as to whether or not the benefits under section 80P could be extended.  Court also held that   the recovery from the bank had been done in a manner depriving the interest of the assessee and without following the guidelines which ought to have been followed in the matter of garnishee attachment and recovery. The recovery was effected on the same day when the notice was issued to the garnishee, that too within 2 days of the amount having become due. Mere forwarding of a copy of the notice, after effecting recovery, would not in any way serve the object underlying the legislative intent in introducing clause (iii) of section 226(3) , especially because the Department ought to have considered the pendency of the appeal. However, since the amount had already been collected against the existing demand, release of the amount was not directed, unless the assessee furnished bank guarantee for the entire amount.