income tax demand
This query is : Resolved
06 May 2017
I have filed an appeal to CIT against demand which was raised by ITO,do I need to pay tax when appeal is pending before CIT and now i have received a show cause notice from ITO for non payment of tax and asking me to submit tax?
06 May 2017
ITO will take steps to recover the tax unless you produce a stay order.
06 May 2017
Thank you sir,who can give stay order?CIT or ITO?
09 May 2017
The filling of appeal is in itself does not amount to deferment of demand. Therefore first file an application for not treating the assessee in default u/s 220(6) till the disposal of first appeal along with a copy of Form 35. Reference may also be made to CBDT circulars in this regard. If AO does not grant the stay application may be filed to CIT. In maheshwari Agor Industries vs UOI, the honorable Raj High Court has directed the AO's to consider stay application in accordance with Instruction no 95, in this case it was also held that CIT(A) has inherent powers to consider stay of demand though not expressly mentioned in section 246. Though this judgment was delivered in the case where assessment was a high pitched one i.e. 47 times of the returned income.
09 May 2017
You may move a stay petition before the CIT (Appeals).
09 May 2017
thanks a lot abhishek and chackrapani sir,your guidance helped me.
10 May 2017
Can also seek a stay from AO on payment of 15% of tax demanded vide the press note given below.
Press Information Bureau
Government of India
Ministry of Finance
03-March-2016 17:41 IST
CBDT issues Revised Guidelines for stay of demand at the First Appeal Stage; Decision of the Board to provide significant relief to the taxpayers in matters relating to grant of stay and recovery of demand by reducing arbitrariness in the disposal of stay petitions where the tax demand is contested at the First Appellate stage.
With a view to streamline the process of grant of stay of demand when the case of the taxpayer is pending before Commissioner (Appeals) and to standardize the quantum of lump-sum payment required to be made by the assessee as a pre-condition for stay of demand disputed, the Central Board of Direct Taxes (CBDT) has issued fresh guidelines to the field authorities of the Income Tax Department.
Under the revised guidelines, where the outstanding demand is disputed before Commissioner (Appeals), the assessing officer shall grant stay of demand till disposal of first appeal on payment of 15% of the disputed demand. In case, any deviation from the standard pre-payment of 15% is proposed by the Assessing Officer, he shall refer the matter to the administrative Principal Commissioner or Commissioner, 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. In a case, where stay of demand is granted by the Assessing Officer on payment of 15% of the disputed demand and the assessee is still aggrieved, he may approach the jurisdictional administrative Principal Commissioner or Commissioner for a review of the decision of the assessing officer.
This decision of the Board is expected to provide significant relief to the taxpayers in matters relating to grant of stay and recovery of demand by reducing arbitrariness in the disposal of stay petitions where the tax demand is contested at the First Appellate stage.
The Office Memorandum dated 29.02.2016 issued in this regard is available on the website of the Department www.incometaxindia.gov.in.
Press Information Bureau
Government of India
Ministry of Finance
03-March-2016 17:41 IST
CBDT issues Revised Guidelines for stay of demand at the First Appeal Stage; Decision of the Board to provide significant relief to the taxpayers in matters relating to grant of stay and recovery of demand by reducing arbitrariness in the disposal of stay petitions where the tax demand is contested at the First Appellate stage.
With a view to streamline the process of grant of stay of demand when the case of the taxpayer is pending before Commissioner (Appeals) and to standardize the quantum of lump-sum payment required to be made by the assessee as a pre-condition for stay of demand disputed, the Central Board of Direct Taxes (CBDT) has issued fresh guidelines to the field authorities of the Income Tax Department.
Under the revised guidelines, where the outstanding demand is disputed before Commissioner (Appeals), the assessing officer shall grant stay of demand till disposal of first appeal on payment of 15% of the disputed demand. In case, any deviation from the standard pre-payment of 15% is proposed by the Assessing Officer, he shall refer the matter to the administrative Principal Commissioner or Commissioner, 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. In a case, where stay of demand is granted by the Assessing Officer on payment of 15% of the disputed demand and the assessee is still aggrieved, he may approach the jurisdictional administrative Principal Commissioner or Commissioner for a review of the decision of the assessing officer.
This decision of the Board is expected to provide significant relief to the taxpayers in matters relating to grant of stay and recovery of demand by reducing arbitrariness in the disposal of stay petitions where the tax demand is contested at the First Appellate stage.
The Office Memorandum dated 29.02.2016 issued in this regard is available on the website of the Department www.incometaxindia.gov.in.
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