https://www.taxtmi.com/highlights?id=105231 Refund adjustment against a disputed penalty demand pending first appeal is ordinarily limited to 20% under CBDT stay guidelines. The guidelines do not distinguish assessment demands from penalty demands, so full adjustment before pending stay applications are decided conflicts with those instructions. Recovery should therefore be confined to 20% of the disputed penalty demand, with excess adjustment reversed and refunded with applicable interest and the balance demand stayed pending disposal of the first appeal. en-us Wed, 21 Oct 2026 08:37:56 +0530 Wed, 21 Oct 2026 08:37:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=105231 Refund adjustment against a disputed penalty demand pending first appeal is ordinarily limited to 20% under CBDT stay guidelines. The guidelines do not distinguish assessment demands from penalty demands, so full adjustment before pending stay applications are decided conflicts with those instructions. Recovery should therefore be confined to 20% of the disputed penalty demand, with excess adjustment reversed and refunded with applicable interest and the balance demand stayed pending disposal of the first appeal. Highlights Income Tax Wed, 21 Oct 2026 08:37:56 +0530 https://www.taxtmi.com/highlights?id=105231