Jurisdiction under section 220(6) rests with the Assessing Officer; recovery stayed pending disposal of the stay petition.

The discretion under section 220(6) of the Income-tax Act, 1961 lies with the Assessing Officer, so an order by the Commissioner directing payment of part of the demand in instalments was without jurisdiction and was set aside. Because the assessee had filed an appeal and stay petition and recovery had begun before that petition was decided, interim protection was warranted; recovery proceedings were stayed until the stay petition was disposed of, and expeditious disposal was directed.

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Issues: (i) Whether the Commissioner of Income-tax had jurisdiction to exercise the discretion under section 220(6) of the Income-tax Act, 1961; (ii) whether recovery proceedings should remain stayed until disposal of the assessee's stay petition.

Issue (i): Whether the Commissioner of Income-tax had jurisdiction to exercise the discretion under section 220(6) of the Income-tax Act, 1961.

Analysis: The discretion contemplated by section 220(6) is vested in the Assessing Officer. An order passed by the Commissioner of Income-tax on a petition under that provision, directing payment of part of the demand in instalments, was therefore made by an authority lacking jurisdiction.

Conclusion: The order passed by the Commissioner under section 220(6) was without jurisdiction and was set aside.

Issue (ii): Whether recovery proceedings should remain stayed until disposal of the assessee's stay petition.

Analysis: The assessee had already filed an appeal and a stay petition, and recovery had commenced without the stay petition being decided. In those circumstances, protection was warranted to prevent prejudice pending consideration of the stay request.

Conclusion: The appellate authority was directed to dispose of the stay petition expeditiously, and recovery proceedings were stayed until such disposal.

Final Conclusion: The assessee obtained relief against the jurisdictionally invalid order and interim protection from coercive recovery pending decision on the stay petition.

Ratio Decidendi: The discretion under section 220(6) of the Income-tax Act, 1961 must be exercised only by the Assessing Officer, and any order on such a request by an authority not vested with that power is without jurisdiction.

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