Exercise of discretion under section 220(6) of the Income-tax Act, 1961, to treat the assessee as not being in default in respect of the amounts disputed in first appeal pending before Deputy Commissioner Appeals)/Commissioner of Income-tax (Appeals)

Discretion to treat taxpayer not in default pending appeal allows suspension of disputed tax demand on application.

Exercise of section 220(6) discretion allows the Assessing Officer, on the assessee's application, to treat the assessee as not in default for amounts attributable to disputed points while an appeal remains pending where there are conflicting High Court interpretations or where the issue was earlier decided in the assessee's favour in the assessee's own case. The concession is limited to disputed amounts, may be withdrawn for non-cooperation or changed legal developments, and in other cases requires a speaking order; financial capacity is not relevant and the guidelines apply to other direct tax laws.