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Review of stay matters in case of disputed dues and applications for stay of balance instalments fixed earlier new demands etc.

Review of stay matters in case of disputed dues and applications for stay of balance instalments fixed earlier, new demands etc. - Income Tax - Direct Tax Code - DTC - By: - CA DEV KUMAR KOTHARI - Dated:- 1-3-2016 - Latest circular: The Board has issued Circular vide F.No.404/72/93-ITCC 29th February, 2016 which is very important step towards reduction of harassment by Assessing Officers by making high pitched assessments and then pressing hard for recovery of disputed dues. This also found ment .....

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d relations with AO and manly to avoid further harassment. Let us hope that Assessing Officers will follow instructions and act accordingly. Past experience is not good. We have noticed complete disregard of Circulars by Assessing Officers while passing assessment orders, refusing or not considering petitions, collecting tax etc. Action must be taken against erring officers, however, there seems no action, rather we find appreciation by senior authorities ( may be even by CBDT) when tax is colle .....

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an be suitably drafted giving full facts of demand, stay petition, instalments paid and balance remaining etc. An illustrative chart about applicability of Circular is given below: LATES CIRCULAR DATED vide F. No.404/72/93-ITCC 29.02.16 EXAMINED IN CASE OF …….. From circular Applicability in our case - illustrations 2. In part C of the Instruction, it has been prescribed that a demand will be stayed only if there are valid reasons for doing so and that mere filing of an appeal agai .....

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thorities often insist on payment of a very high proportion of the disputed demand before granting stay of the balance demand. This often results in hardship for the taxpayers seeking stay of demand. In AY 2012-13 the learned AO insisted for full payment including interest. instalment are pending , which may be waived 4. In order to streamline the process of grant of stay and standardize the quantum of lump sum payment required to be made by the assessee as a pre-condition for stay of demand dis .....

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y in our own case/ in case of ……. ( (B) In a situation where, a) the assessing officer is of the view that the nature of addition resulting in the disputed demand is such that payment of a lump sum amount higher than 15% is warranted (e.g. in a case where addition on the same issue has been confirmed by appellate authorities in earlier years or the decision of the Supreme Court /or jurisdictional High Court is in favour of Revenue or addition is based on credible evidence collected .....

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ficer shall refer the matter to the administrative Pr. CIT/ CIT, who after considering all relevant facts shall decide the quantum/ proportion of demand to be paid by the assessee as lump sum payment for granting a stay of the balance demand. Not applicable in our case because in our case demand is due to contrary stand taken by learned AO instead of following judgments in favor of assessee in his own case. (C) In a case where stay of demand is granted by the assessing officer on payment of 15% .....

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assessing officer making such reference or the assessee filing such review, as the case may be. We expect that full demand shall be stayed by the learned AO (E) In granting stay, the Assessing Officer may impose such conditions as he may think fit. He may, inter alia,- (i) require an undertaking from the assessee that he will cooperate in the early disposal of appeal failing which the stay order will be cancelled; Yes we undertake, in fact we have already filed written submission and paper book .....

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if any, against the demand, to the extent of the amount required for granting stay and subject to the provisions of section 245. Not applicable in our case. The circular is reproduced below with highlights added: F.No.404/72/93-ITCC Government of India Ministry of Finance Central Board of Direct Taxes (CBDT) New Delhi, Dated: 29th February, 2016 Office Memorandum Sub: Partial modification of Instruction No. 1914 dated 21.03.1996 to provide for guidelines for stay of demand at the first appeal st .....

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e granting stay, the field officers may require the assessee to offer a suitable security (bank guarantee, etc.) and/ or require the assessee to pay a reasonable amount in lump sum or in instalments. 3. It has been reported that the field authorities often insist on payment of a very high proportion of the disputed demand before granting stay of the balance demand. This often results in hardship for the taxpayers seeking stay of demand. 4. In order to streamline the process of grant of stay and .....

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nder. (B) In a situation where, (a) the assessing officer is of the view that the nature of addition resulting in the disputed demand is such that payment of a lump sum amount higher than 15% is warranted (e.g. in a case where addition on the same issue has been confirmed by appellate authorities in earlier years or the decision of the Supreme Court /or jurisdictional High Court is in favour of Revenue or addition is based on credible evidence collected in a search or survey operation, etc.) or, .....

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