TMI BlogScope of ITOs powers u/s 220(6).X X X X Extracts X X X X X X X X Extracts X X X X ..... ious instructions on this subject. 3. U/s.220(6) of the I.T.Act the ITO may in his discretion subject to such conditions as he may think fit to impose treat the assessee as not being in default in respect of the amount in dispute in the appeal as long as such appeal remains undisposed of even though the time for payment has expired. 4.It should be noted that sec.220(6) does not refer to stay of demand, it only empowers an ITO to treat an assessee as not being in default. Though in the succeeding paragraphs of this instruction, the word 'stay' has been used for the sake of brevity whenever an ITO passes an order under the provisions of sec.220(6) he should invariably use in such order only the expression which is found in the section sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d out that even in the situations indicated in para 6 above what should be stayed is only the demand attributable to such disputed points. 8. When a request for stay has been considered by the ITO his decision should always be recorded in writing and communicated to the assessee. 9. As stated in para 3 above in granting stay the ITO may impose such conditions as he may think fit. Thus the ITO may : i) require the assessee to offer suitable security to safeguard the interests of revenue; ii) require, during the pendency of the appeal, the assessee to pay towards the disputed taxes a reasonable amount in lumpsum or in instalments. iii) require an undertaking from the assessee that he will cooperate in the early disposal of the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terated. 14. Where the demand thus stayed by the ITO is Rs.25,000 or more the ITO will intimate the relevant particulars i.e., the details of pending appeals, the quantum of demand stayed and the condition imposed to the IAC/CIT who will request the appellate authorities for early disposal of such appeals in accordance with existing instructions on the subject. 15. These instructions apply mutatis mutandis to demands created under other direct taxes enactments. 16. The ITOs working in your charge may please be instructed to deal with applications u/s.220(6) in accordance with these instructions. The subsisting orders passed by them u/s.220(6) may also be got reviewed in the light of these instructions after giving the assessee an oppo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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