PRIYA NARULA Vs. DY. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The matter has been heard by way of video conferencing.

(2.) Present writ petition has been filed seeking refund of Rs.2,87,520.00 which was recovered in excess of 20% of the total disputed tax demand for the Assessment Year 2017-18 against the refunds due for the Assessment Years 2020-21 and 2021-22.

(3.) Learned counsel for the petitioner states that under Sec. 220(6) of the Income Tax Act, 1961 [for short 'the Act'], the Assessing Officer has been conferred with the power to grant stay on recovery of outstanding tax demand subject to fulfillment of appropriate conditions. He states that in order to provide guidance and lay down principles regarding stay of demand, the Central Board of Direct Taxes has issued various Circulars/ Notifications from time to time including Office Memorandums dtd. 29/2/2016 and 31/7/2017 prescribing that in cases where an assessee challenges the additions/ disallowances made in the assessment order by way of an appeal before the First Appellate Authority, i.e., CIT(A), and during the pendency thereof deposits 20% of the total disputed outstanding tax demand, the Assessing Officer is empowered to grant stay of recovery of the balance outstanding demand.