stay of demand

[satbir singhwahi]

The A.O. has given order u/s 143(3) , and raised demand of Rs. 10 lacs . The assessee is going for appeal with CIT (Appeals). Whether demand of Rs. 10 lacs can be kept in abeyance till the disposal of appeal ?  What is the procedure for stay of demand.

[Rama Krishana]

You may submit an applicable to grant of stay before the AO or before the CIT(A) or higher forum, as the case may be, to keep the recovery proceedings in abeyance. If no stay is granted, revenue may initiate recovery Proceedings.

AI Summary

Stay of demand can be sought to suspend tax recovery pending appeal by applying to assessing officer or appellate forum. An assessing officer issued an order under section 143(3) raising a tax demand; the assessee may apply for a stay of demand to the assessing officer, to the appellate forum hearing the appeal, or to a higher forum to keep recovery proceedings in abeyance pending disposal of the appeal; absent a granted stay, revenue may initiate recovery proceedings.