COLLECTION AND RECOVERY - SECTION 220? WHEN TAX PAYABLE - ASSESSEE IN DEFAULT

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.... for valid reasons only in accordance with the guidelines given below :— A. RESPONSIBILITY             (i)         It shall be the responsibility of the Assessing Officers and the TRO to collect every demand that has been raised, except the following :             (a)        Demand which has not fallen due;             (b)        Demand which has been stayed by a Court or ITAT or Settlement Commission;         &nbs....

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....de to the authorities higher than the Assessing Officer (DC/CIT/CC), it is the responsibility of the higher authorities to dispose of the petitions without any delay, and in any event within two weeks of the receipt of the petition. Such a decision should be communicated to the assessee and the Assessing Officer immediately.             (iii)       The decision in the matter of stay of demand should normally be taken by Assessing Officer/TRO and his immediate superior. A higher superior authority should interfere with the decision of the AO/TRO only in exceptional circumstances e.g. where the assessment order appears to be unreasonably highpitched or whe....

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....nt has not accepted that judgment.                         It is clarified that in these situations also, stay may be granted only in respect of the amount attributable to such disputed points. Further, where it is subsequently found that the assessee has not cooperated in the early disposal of appeal or where a subsequent pronouncement by a higher appellate authority or court alters the above situation, the stay order may be reviewed and modified. The above illustrations are, of course, not exhaustive.             (ii)        In gra....

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....e liberally allowed so as to collect the entire demand within a reasonable period not exceeding 18 months.             (iv)       Since the phrase 'stay of demand' does not occur in section 220(6) of the Income-tax Act, the Assessing Officer should always use in any order passed under section 220(6) [or under section 220(3) or section 220(7)], the expression that occurs in the section viz, that he agrees to treat the assessee as not being in default in respect of the amount specified, subject to such conditions as he deems fit to impose.             (v)        Wh....