INCOME TAX ACT, 1961

Section 220(6)

Recovery - Stay of demand - Stay order being a non-speaking order -

Assessee-company prayed for quashing of a stay order passed by AO, wherein AO directed the assessee to deposit 20% of the disputed demand as a condition for the stay. It was submitted that a detailed application was filed by the assessee under section 220(6) elaborating all the reasons on the basis of which a complete stay order was being sought, but AO without dealing with any of the grounds had passed a completely non-speaking order in violation of the Instructions and the Guidelines issued by the Department. Held: As per Clause (C)(v) of the Guidelines for Staying Demand, while considering an application under section 220(6), AO should consider all relevant factors having a bearing on the demand raised and communicate his decision in the form of a speaking order. In instant case, it was found that the stay order passed by AO was a non-speaking order. Accordingly, the said stay order was set aside and AO was directed to pass a fresh order in accordance with law after taking into consideration the applicable Guidelines.

REFERRED :

FAVOUR : Directions issued

A.Y. :

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