Court Criticizes Tax Officer for Ignoring Merits and Hardship in Stay of Demand Case, Orders Fresh Evaluation.

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....The Delhi High Court addressed a case involving a stay of demand where the petitioner was required to deposit 20% of the outstanding demand as a pre-condition for protection. The court found that the assessing officer (AO) did not consider the prima facie merits of the challenge raised by the petitioner or address the issue of undue hardship. Referring to a previous case, the court emphasized the importance of examining the AO's power under Section 220(6) of the Act and criticized the AO's stance that the application for stay could not be entertained without the pre-deposit. The court concluded that the petition should be remitted to the AO for a fresh consideration of the stay application.....