2024 (6) TMI 825

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....claims to be an educational research organization engaged in imparting education. It is the petitioner's case that the petitioner was served with a notice issued under Section 143 (2) of the Income Tax Act, 1961 (hereinafter referred to as the "said Act") dated 22nd September, 2019 whereby the petitioner was called upon to furnish details as specified in the said notice justifying its return income. According to the petitioner, sometimes in the month of February, 2020 the Assessing Officer had sent a questionnaire to the petitioner under Section 142 (1) of the said Act, seeking the petitioner's reply on or before 26th February, 2020. The petitioner, however, was unable to file such reply within the due date and had sought for extension. Sub....

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.... the petitioner as not being in default in respect of the amount in dispute in the appeal, such application captioned as "petition for stay of demand and taking coercive measure" was rejected on the ground that mere filing of appeal was not sufficient reason for staying the demand. Accordingly, the petitioner was directed to deposit 20% of the outstanding demand as per CBDT Instruction No. 1914 dated 2nd December, 1993. 4. Ms. Kumari, learned Advocate representing the petitioner, submits that in the event the petitioner is called upon to deposit 20% of the disputed amount, the same would result in enormous financial burden/stress and would effect day to day functioning of the petitioner. She submits that it is not mandatory in all cases ....

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....h ordinarily where an assessee files an appeal disputing the demand, stay may be granted upon payment of 20% of the disputed demand, however, exceptional circumstances have also been noted in the Memorandum dated 29th February, 2016. In this context, paragraph 4 of the aforesaid Memorandum is extracted hereinbelow : "4. In order to streamline the process of grant of stay and standardize the quantum of lump sum payment required to be made by the assessee as a pre-condition for stay of demand disputed before CIT (A), the following modified guidelines are being issued in partial modification of Instruction No. 1914: (A) In a case where the outstanding demand is disputed before CIT (A), the assessing officer shall grant stay o....

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....ional administrative Pr. CIT/CIT for a review of the decision of the assessing officer. (D) The assessing officer shall dispose of a stay petition within 2 weeks of filing of the petition. If a reference has been made to Pr. CIT/CIT under para 4 (B) above or a review petition has been filed by the assessee under para 4 (C) above, the same shall also be disposed of by the Pr. CIT/ CIT within 2 weeks of the assessing officer making such reference or the assessee filing such review, as the case may be. (E) In granting stay, the Assessing Officer may impose such conditions as he may think fit. He may, inter alia,- (i) require an undertaking from the assessee that he will cooperate in the early disposal of appeal faili....