Partial modification of Instruction No. 1914, dated 21-3-1996 to provide for guidelines for stay of demand at the first appeal stage. - Income Tax - F. No. 404/72/93-ITCC

F. No. 404/72/93-ITCC C. B. D. T. Circulars/Office Memorandum Office Memorandum Dated 31-07-2017 Subject : Partial modification of Instruction No. 1914, dated 21-3-1996 to provide for guidelines for stay of demand at the first appeal stage. Reference : Board s O.M. of even number dated 29-2-2016. Instruction No. 1914 dated 21st March, 1996, contains guidelines issued by the Board regarding procedure to be followed for recovery of outstanding demand, including procedure for grant of stay of demand. Vide O. M. No. 404/72/93-ITCC, dated 29th February, 2016, revised guidelines were issued in partial modification of Instruction No. 1914, wherein, inter alia, vide para 4(A) it had been laid down that in a case where the outstanding demand is disputed before Commissioner of Income-tax (Appeals) the Assessing Officer shall grant stay of demand till disposal of first appeal on payment of 15 per cent. of the disputed demand, unless the case falls in the category discussed in para (B) thereunder. Similar references to the standard rate of 15 per cent. have also been made in succeeding paragraphs therein. The matter has been, reviewed by the Board in the light of feedback received from field authorities. In view of the Board s efforts to contain over pitched assessments through several measures resulting in fairer and more reasonable assessment orders, the standard rate of 15 per cent. of the disputed demand is found to be on the lower side. Accordingly, it has been decided that the standard rate prescribed in O. M. dated 29th February, 2016, be revised to 20 per cent. of the disputed demand, where the demand is contested before Commissioner of Income-tax (Appeals). Thus, all references to 15 per cent. of the disputed demand in the aforesaid O. M dated 29th February, 2016, hereby stand modified to 20 per cent. of the disputed demand Other guidelines contained in the O. M. dated 29th February, 2016, shall remain unchanged. These modifications may be immediately brought to the notice of all officers working in your jurisdiction for proper compliance. (Sd.) . . . . . . . A. K. Sinha, Director (ITCC) [F. No. 404/72/93-ITCC]