TMI BlogCOLLECTION AND RECOVERY - SECTION 220? WHEN TAX PAYABLE - ASSESSEE IN DEFAULTX X X X Extracts X X X X X X X X Extracts X X X X ..... idelines given below :— A. RESPONSIBILITY (i) It shall be the responsibility of the Assessing Officers and the TRO to collect every demand that has been raised, except the following : (a) Demand which has not fallen due; (b) Demand which has been stayed by a Court or ITAT or Settlement Commission; (c) Demand for which a proper proposal for write off has been submitted; (d) Demand stayed in accordance with paras B C below. (ii) Where demand in respect of which a Recovery Certificate has been issued or a statement has been drawn, the primary responsibility for the collection of tax shall rest with the TRO. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me for withholding payment of taxes. C. GUIDELINES FOR STAYING DEMAND (i) A demand will be stayed only if there are valid reasons for doing so. Mere filing an appeal against the assessment order will not be sufficient reason to stay the recovery of demand. A few illustrative situations where stay could be granted are— (a) if the demand in dispute relates to issues that have been decided in assessee's favour by an appellate authority or court earlier; or (b) if the demand in dispute has arisen because the Assessing Officer had adopted an interpretation of law in respect of which there exist conflicting decisions of one or more High Courts (not of the High Court under whose jur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove situations; (e) reserve a right to adjust refunds arising, if any against the demand. (iii) Payment by instalments may be liberally allowed so as to collect the entire demand within a reasonable period not exceeding 18 months. (iv) Since the phrase 'stay of demand' does not occur in section 220(6) of the Income-tax Act, the Assessing Officer should always use in any order passed under section 220(6) [or under section 220(3) or section 220(7)], the expression that occurs in the section viz, that he agrees to treat the assessee as not being in default in respect of the amount specified, subject to such conditions as he deems fit to impose. (v) While consider ..... X X X X Extracts X X X X X X X X Extracts X X X X
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