A.O.'s discretion u/s 220(6). - Income Tax - 1816/1989

INSTRUCTION NO. 1816/1989 Dated: December 4, 1989 U/s.220(6) of the Act where an assessee has presented an appeal u/s.246 of the Act before the DC(Appeals) or CIT(Appeals) the assessing officer may in his discretion, and subject to such conditions as he may think fit to impose in the circumstances of the case treat the assessee as not being in default in respect of the amount in dispute in the appeal even though the time for payment has expired as long as such appeal remains undisposed of. 2. The Board had issued detailed guidelines vide Instruction No.1362 dated 15-10-80 regarding the factors which should be taken into account by the Assessing officer while exercising his discretion u/s.220(6). The instruction also illustrated the conditions which may be imposed by the A.O. while staying the recovery of disputed tax demand. Subsequently a circular No.530 dated 6-3-89 has also been issued on this subject. The object of issuing this circular was to inform the public about the Governments policy on recovery of disputed tax demands and the circumstances in which the A.O. shall stay the recovery of disputed tax demands. 3. It is hereby clarified that the Instruction No.1362 will continue to be operative in so far as it relates to matters not covered by the circular No.530. This may be brought to the notice of all officers in your region.