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)

Assessing Officer's Discretion u/s 220(6) for Pending Tax Appeals Explained.

Under section 220(6) of the Income-tax Act, 1961, an Assessing Officer can treat an assessee as not in default for disputed amounts in a pending appeal before the Deputy Commissioner (Appeals) or Commissioner (Appeals). This discretion can be exercised if the demand arises from conflicting legal interpretations or if issues were previously decided in favor of the assessee. The assessee must apply for this consideration, and cooperation in resolving the appeal is required. If circumstances change, the officer can reassess the situation. These guidelines also apply to other Direct Tax Laws, and financial capacity is not a consideration.