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TMI Blog2025 (2) TMI 923X X X X Extracts X X X X X X X X Extracts X X X X ..... of the disputed demand has been made condition precedent for hearing the application for stay which is not contemplated either under the Act of 1961 or the CBDT guidelines dated 29-2-2016 modified by the office memorandum dated 31-7-2017. It is only when the competent authority is of the opinion that the assessee has made out a case for grant of interim relief, stay can be granted subject to deposit of 20% of the disputed demand. Likewise, there is a further clause in the circular for reduction of 20% deposit if the petitioner makes out a case, it has also not been considered. In straightway, direction of deposit of 20% of the disputed demand has been made which is not the correct way of deciding the application for stay of the disputed de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as framed by the Bombay High Court and followed by this Court. 3. Learned counsel further submits that in the instant matter also, the Assessing Officer rejected the stay application only on the ground that the petitioner failed to pre-deposit 20% of the total demand amount. He would further submit that the demand has been raised by the Revenue on account of non-availability of pan cards of marginal maize farmers, due to which, the tax liability has wrongly been assessed in respect of the petitioner. He would further submit that the petitioner, after receiving the demand notice under Section 156 of the Income Tax Act, 1961 (for short, "the Act, 1961"), challenged the Assessment Order by filing an Appeal under Section 246 of the Act, 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of the assessee. (b) In cases where the assessed income under the impugned order far exceeds returned income, the authority will consider whether the assessee has made out a case for unconditional stay. If not, whether looking to the questions involved in appeal, a part of the amount should be ordered to be deposited for which purpose, some short prima facie reasons could be given by the authority in its order. (c) In cases where the assessee relies upon financial difficulties, the authority concerned can briefly indicate whether the assessee is financially sound and viable to deposit the amount if the authority wants the assessee to so deposit. (d) The authority concerned will also examine whether the time to prefer an appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to enable the assessee to move a higher forum, if so advised. Coercive steps may, however, be adopted where the authority has reason to believe that the assessee may defeat the demand, in which case brief reasons may be indicated. 2. The stay application, if any, moved by the assessee should be disposed of after hearing the assessee and bearing in mind the guidelines in KEC International; 3. If the Assessing Officer has taken a view contrary to what has been held in the preceding previous years without there being a material change in facts or law, that is a relevant consideration in deciding the application for stay; 4. When a bank account has been attached, before withdrawing the amount, reasonable prior notice should be furni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act of 1961 or the CBDT guidelines dated 29-2-2016 modified by the office memorandum dated 31-7-2017. It is only when the competent authority is of the opinion that the assessee has made out a case for grant of interim relief, stay can be granted subject to deposit of 20% of the disputed demand. Likewise, there is a further clause in the circular for reduction of 20% deposit if the petitioner makes out a case, it has also not been considered. In straightway, direction of deposit of 20% of the disputed demand has been made which is not the correct way of deciding the application for stay of the disputed demand." 7. Since similar question is involved in this matter, the impugned order dated 20.01.2025 is set-aside and the matter is remi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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