1. Ajat Wadhwa, FCA 1 STAY OF RECOVERY OF DEMAND BY AJAY WADHWA

2. Ajat Wadhwa, FCA 2 SECTION 220(1) Any amount, other than advance tax, specified in the notice of demand u/s 156 is liable to be paid within 30 days of the service of notice of demand. The period of 30 days can be curtailed by the AO under certain circumstances. Failure to pay the demand within specified period attracts interest u/s 220(2).

3. Ajat Wadhwa, FCA 3 RELEVANT SECTIONS Section 220(3) The assessee can apply to the AO to extend the time period and to grant installments. The application should be filed before the expiry of due date specified in the notice of demand Section 220(6) Where an appeal has been filed u/s 246A, the AO may in his discretion and subject to certain conditions may not treat the assessee as not being in default in respect of the amount in dispute in appeal. 1. Deals with the whole of arrears/disputed amount only. 2. Discretion under section 220(6) wider.

4. Ajat Wadhwa, FCA 4 Parameters to be followed by AO disposing stay applications. Parameters to be followed by AO disposing stay applications. Briefly set out case. Briefly set out case. If huge demand whether unconditional stay – otherwise if some tax to be deposited a short prima facie case to be made out. If huge demand whether unconditional stay – otherwise if some tax to be deposited a short prima facie case to be made out. Financial viability plea to be countered. Financial viability plea to be countered. Generally no coercive measures till time available to go in appeal. Generally no coercive measures till time available to go in appeal. B.R. Balakrishnan. 119 Taxman 974 Bom. B.R. Balakrishnan. 119 Taxman 974 Bom.

5. Ajat Wadhwa, FCA 5 Failure to pay the demand within specified period will result in assessee being declared as “deemed to be in default”. Section 220(4) Penalty u/s 221 leviable unless good and sufficient reasons for default. If assessee is in default or deemed to be in default-the Tax Recovery Officer may also initiate recovery proceedings by way of attachment and sale of assessee’s movable and immovable property, arrest or appointing a receiver for the management of assessee’s movable or immovable properties. Section 222.

6. Ajat Wadhwa, FCA 6 Section 226 - Recovery proceedings without certificate of recovery. - Recovery proceedings without certificate of recovery. -Only when the debt exists or is due. -Only when the debt exists or is due. -Units of UTI – can’t be attached even though due for repurchase but assessee hasn’t exercised option. B.M. Malani 164 Taxman 463 SC. - No recovery if statement on oath by person that sum demanded is not due to assessee or he doesn’t hold any money for on account of assessee. Section 226(3) (vi). -Burden on Deptt to prove statement on oath is false before enforcing recovery. -House standing in name of wife- department can’t attach by alleging that it is the benami of husband. Khateja Bai 114 CTR 279 MP. - Joint property- only 5 th share of son liable to be attached. Tippal China 331 ITR 248 AP. - land purchased in name of minor son-house constructed in his name-no recovery from father when minor became major.

7. Ajat Wadhwa, FCA 7 POWER TO GRANT STAY BY CIT(A) The power to grant stay of collection of tax is an inherent and incidental power to the effective exercise of the appellate powers of the first appellate authority The power to grant stay of collection of tax is an inherent and incidental power to the effective exercise of the appellate powers of the first appellate authority (i)Pradeep Ratanshri v. ACIT (1996) 221 ITR 504 (Ker) (i)Pradeep Ratanshri v. ACIT (1996) 221 ITR 504 (Ker) (ii)Keshav Cashew Co. v. DCIT (1994) 210 ITR 1014 (ii)Keshav Cashew Co. v. DCIT (1994) 210 ITR 1014 (iii)Paulsons Litho Works v. ITO (1994) 208 ITR 676 (iii)Paulsons Litho Works v. ITO (1994) 208 ITR 676

8. Ajat Wadhwa, FCA 8 APPLICATION FOR STAY OF DEMAND Boards letter F.No 404/10/2009-ITCC 1 st Dec 2009. As per CBDT’s instruction No. 1914 of 1993 dated 02.12.1993, supersedes all other circulars and instructions. Boards letter F.No 404/10/2009-ITCC 1 st Dec 2009. As per CBDT’s instruction No. 1914 of 1993 dated 02.12.1993, supersedes all other circulars and instructions. Instruction No. 1914 of 1993 dated 02.12.1993. Instruction No. 1914 of 1993 dated 02.12.1993. AO to collect demand fallen due except when stayed by ITAT, Settlement Commission or Court, for which proposal for write off submitted or as per paras B&C. AO to collect demand fallen due except when stayed by ITAT, Settlement Commission or Court, for which proposal for write off submitted or as per paras B&C. Paras B: Paras B: Stay to be disposed off within 2 weeks. Stay to be disposed off within 2 weeks. Where stay petitions are made 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. Where stay petitions are made 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.

9. Ajat Wadhwa, FCA 9 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 high pitched or where genuine hardship is likely to be caused to the assessee. The higher authorities should discourage the assessee from filing review petitions before them as a matter of routine or in a frivolous manner to gain time for withholding payment of taxes. 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 high pitched or where genuine hardship is likely to be caused to the assessee. The higher authorities should discourage the assessee from filing review petitions before them as a matter of routine or in a frivolous manner to gain time for withholding payment of taxes. (i) A demand will be stayed only if there are valid reasons for doing (i) A demand will be stayed only if there are valid reasons for doing

10. Ajat Wadhwa, FCA 10 C. Guidelines for Staying Demand C. Guidelines for Staying Demand (i) A demand will be stayed only if there are valid reasons for doing so. Mere filing an appeal against the assessment order will not be sufficient reason to stay the recovery of demand. A few illustrative situations where stay could be granted are— (i) A demand will be stayed only if there are valid reasons for doing so. Mere filing an appeal against the assessment order will not be sufficient reason to stay the recovery of demand. A few illustrative situations where stay could be granted are— (a) if the demand in dispute relates to issues that have been decided in assessee’s favour by an appellate authority or Court earlier; or (a) if the demand in dispute relates to issues that have been decided in assessee’s favour by an appellate authority or Court earlier; or (b) if the demand in dispute has arisen because the Assessing Officer had adopted an interpretation of law in respect of which there exist conflicting decisions of one or more High Courts (not of the High Court under whose jurisdiction the Assessing Officer is working); or (b) if the demand in dispute has arisen because the Assessing Officer had adopted an interpretation of law in respect of which there exist conflicting decisions of one or more High Courts (not of the High Court under whose jurisdiction the Assessing Officer is working); or (c) if the High Court having jurisdiction has adopted a contrary interpretation but the Department has not accepted that judgment. (c) if the High Court having jurisdiction has adopted a contrary interpretation but the Department 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. It is clarified that in these situations also, stay may be granted only in respect of the amount attributable to such disputed points.

11. Ajat Wadhwa, FCA 11 (ii) In granting stay, the Assessing Officer may impose such conditions as he may think fit. (ii) In granting stay, the Assessing Officer may impose such conditions as he may think fit. a) require the assessee to offer suitable security to safeguard the interest of Revenue; a) require the assessee to offer suitable security to safeguard the interest of Revenue; (b) require the assessee to pay towards the disputed taxes a reasonable amount in lump sum or in instalments; (b) require the assessee to pay towards the disputed taxes a reasonable amount in lump sum or in instalments; (c) require an undertaking from the assessee that he will co-operate in the early disposal of appeal failing which the stay order will be cancelled; (c) require an undertaking from the assessee that he will co-operate in the early disposal of appeal failing which the stay order will be cancelled; (d) reserve the right to review the order passed after expiry of reasonable period, say upto 6 months, or if the assessee has not co- operated in the early disposal of appeal, or where a subsequent pronouncement by a higher appellate authority or Court alters the above situations; (d) reserve the right to review the order passed after expiry of reasonable period, say upto 6 months, or if the assessee has not co- operated in the early disposal of appeal, or where a subsequent pronouncement by a higher appellate authority or Court alters the above situations; (e) reserve a right to adjust refunds arising, if any, against the demand. (e) reserve a right to adjust refunds arising, if any, against the demand.

12. Ajat Wadhwa, FCA 12 (iii) Payment by instalments may be liberally allowed so as to collect the entire demand within a reasonable period not exceeding 18 months. (iii) Payment by instalments may be 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 amount specified, subject to such conditions as he deems fit to impose. (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 amount specified, subject to such conditions as he deems fit to impose. (v) While considering an application under section 220(6), Assessing Officer should consider all relevant factors having a bearing on the demand raised and communicate his decision in the form of a speaking order. (v) While considering an application under section 220(6), Assessing Officer should consider all relevant factors having a bearing on the demand raised and communicate his decision in the form of a speaking order. CBDT’s instruction No. 96 (F.No. 1/6/69-ITCC dated 21.08.1969) CBDT’s instruction No. 96 (F.No. 1/6/69-ITCC dated 21.08.1969)

13. Ajat Wadhwa, FCA 13 CASE LAWS (a) Volvoline Cummins Ltd v. DCIT (2008) 217 CTR (Del) 292 - Addl. CIT having exercised the power of the AO, the application u/s 220(6) filed by the assessee was required to be dealt with only by the Addl. CIT himself and the matter could not be left to the DCIT, though he had concurrent jurisdiction, assessee is entitled to an absolute stay of demand on the basis of Instruction No. 96, dtd. 21st Aug., 1969 as its assessed income is almost 8 times the returned income; writ petition is allowed with costs of Rs. 15,000/-.

14. Ajat Wadhwa, FCA 14 (b)Soul v DCIT (2008) 220 CTR (Del) 211 - Assessment at a figure of 74 times the returned income being unreasonably high pitched, garnishee proceedings stayed in view of CBDT Instruction No. 96, dtd. 21st Aug., 1969 r/w Instruction No. 1914 dt. 2nd Dec. 1993. (c) Subhash Chander Sehgal v. DCIT (2008) 216 CTR (Del) 139 - In view of the fact that the assessed income of Petitioner is almost 150 times the returned income and appeal is pending there against before the CIT(A) for more than a year, direction is issued in terms of CBDT Instruction No. 96, dtd. 21st Aug., 1969 to the effect that no recovery is to be made nor any coercive steps are to be taken for enforcing the demand till further orders. (d) JCT Ltd 258 ITR 291 Del- Four factors relevant-a) whether there is a prima facie case in favour of the assessee ; (b) the balance of convenience qua deposit or otherwise ; (c) irreparable loss, if any, to be caused in case stay is not granted ; and (d) safeguarding of public interest.

15. Ajat Wadhwa, FCA 15 (d) M.G.M. Transport (Madras) (P) Ltd v. ITO (2007 209 CTR (Mad) 90 – As against tax payable by the assessee at Rs. 3,47,829/-, AO having raised a demand of Rs. 1,40,25,762 CBDT Instruction No. 96, dtd. 21st Aug., 1969 was attracted and AO could not reject stay Petition by merely observing that no valid reason was shown for stay, demand stayed till disposal of appeal subject to payment of Rs. 20 lacs. (e) Taneja Develpers 222 CTR 521 Del. (f) Maharana Shri Bhagwat Singh 223 ITR 192 Raj

16. Ajat Wadhwa, FCA 16 LIABILITY OF DIRECTORS Director of PVT company only responsible. Director of PVT company only responsible. Not liable if he proves that recovery not attributed to any neglect, misfeasance, or breach of duty on his part in relation to affairs of company. Not liable if he proves that recovery not attributed to any neglect, misfeasance, or breach of duty on his part in relation to affairs of company. Burden of proof on Director. Burden of proof on Director. Tax component and not penalty contemplated u/s 179 Dinesh T Tailor 326 ITR 85 Bom. E Ebrahim 332 ITR 122 Kar. Tax component and not penalty contemplated u/s 179 Dinesh T Tailor 326 ITR 85 Bom. E Ebrahim 332 ITR 122 Kar. A finding must that tax dues cannot be recovered from company. Rajendran 253 ITR 139 Mad. A finding must that tax dues cannot be recovered from company. Rajendran 253 ITR 139 Mad. The fact that company disputing the tax liability it can be held that recovery not attributed to any neglect…. Praveen D Desai 149 ITR 187 Bom and Khader International 229 ITR 450 Ker. The fact that company disputing the tax liability it can be held that recovery not attributed to any neglect…. Praveen D Desai 149 ITR 187 Bom and Khader International 229 ITR 450 Ker. Tax returns not filed for ten years- recovery due to neglect of directors. E Ebrahim 332 ITR 122 Kar. Tax returns not filed for ten years- recovery due to neglect of directors. E Ebrahim 332 ITR 122 Kar. Directors siphoning funds from company and therefore no assets for recovery- held neglect. Alex Cherian 320 ITR 49 Ker. Directors siphoning funds from company and therefore no assets for recovery- held neglect. Alex Cherian 320 ITR 49 Ker.

17. Ajat Wadhwa, FCA 17 POWER OF THE ITAT TO GRANT STAY Power to grant stay by the ITAT is laid down under the first, second and third proviso to sub-section (2A) of s. 254 of the Income-tax Act, 1961. Power to grant stay by the ITAT is laid down under the first, second and third proviso to sub-section (2A) of s. 254 of the Income-tax Act, 1961. Under first proviso, the ITAT can grant stay upto 180 days subject to the disposal of appeal within that period. Under first proviso, the ITAT can grant stay upto 180 days subject to the disposal of appeal within that period. If the ITAT is not able to dispose off the appeal under first proviso, the stay can be extended upto 365 days subject to the condition that appeal shall be disposed within the extended period If the ITAT is not able to dispose off the appeal under first proviso, the stay can be extended upto 365 days subject to the condition that appeal shall be disposed within the extended period If for any reason, ITAT is not able to dispose off the appeal within 365 days, the order of the stay shall stand vacated even if the delay in disposing the appeal is not attributable to the assessee. If for any reason, ITAT is not able to dispose off the appeal within 365 days, the order of the stay shall stand vacated even if the delay in disposing the appeal is not attributable to the assessee.

18. Ajat Wadhwa, FCA 18 PROCEDURE FOR FILING STAY APPCIATION BEFORE ITAT The procedure for filing and disposal of stay petition has been laid down under Rule 35A of Appellate Tribunal Rules, 1963. (A)The application for stay of recovery of demand should be presented in triplicate to the Registrar/Asst. Registrar at the Head Quarter/Bench (A)The application for stay of recovery of demand should be presented in triplicate to the Registrar/Asst. Registrar at the Head Quarter/Bench (B)Separate application should be filed for stay of demand in respect of IT/WT/GT etc (B)Separate application should be filed for stay of demand in respect of IT/WT/GT etc

19. Ajat Wadhwa, FCA 19 The application should contain the following:- The application should contain the following:- Brief facts regarding demand of tax, interest penalty etc which is sought to be stayed Brief facts regarding demand of tax, interest penalty etc which is sought to be stayed Outcome of appeal filed before CIT(A) Outcome of appeal filed before CIT(A) The exact amount of undisputed tax, interest, penalty etc The exact amount of undisputed tax, interest, penalty etc Date of filing of appeal before Tribunal Date of filing of appeal before Tribunal Whether any application for stay was made before tax authorities and if so, result thereof Whether any application for stay was made before tax authorities and if so, result thereof Reasons in brief for seeking stay Reasons in brief for seeking stay Whether the assessee is prepared to offer security and if so, in what form Whether the assessee is prepared to offer security and if so, in what form The prayer should be clear and concise stating exact amount sought to be stayed The prayer should be clear and concise stating exact amount sought to be stayed Affidavit sworn by the applicant or his authorized agent Affidavit sworn by the applicant or his authorized agent

20. Ajat Wadhwa, FCA 20 IMPORTANT DECISIONS Demand not to be pressed during the period of pendency of application before the Tribunal. Bongaigaon Refinery 256 ITR 698 Gau. Demand not to be pressed during the period of pendency of application before the Tribunal. Bongaigaon Refinery 256 ITR 698 Gau. No recovery till CIT / ITAT decides on stay appln - otherwise refund of tax – Pass speaking order after opportunity, RPG Enterprises 74 TTJ 391 (Mum), Maharashtra State Electricity Board 75 TTJ 931 (Mum), Mahindra & Mahindra v. DOI 59 ELT 505 (Mumbai), 86 ITD 462 (Mad), 258 ITR 291(Del). H eld that when the assessee is aware of the right of further appeal, he also has a right to reasonably expect that the tax authorities will not destroy his right to ask for a stay No recovery till CIT / ITAT decides on stay appln - otherwise refund of tax – Pass speaking order after opportunity, RPG Enterprises 74 TTJ 391 (Mum), Maharashtra State Electricity Board 75 TTJ 931 (Mum), Mahindra & Mahindra v. DOI 59 ELT 505 (Mumbai), 86 ITD 462 (Mad), 258 ITR 291(Del). H eld that when the assessee is aware of the right of further appeal, he also has a right to reasonably expect that the tax authorities will not destroy his right to ask for a stay

21. Ajat Wadhwa, FCA 21 Appropriation from bank without notice and without disposal of stay illegal-costs Purnima Das 329 ITR 278 Cal. Appropriation from bank without notice and without disposal of stay illegal-costs Purnima Das 329 ITR 278 Cal. Glaxo Smithkline Asia (2 SOT 457 - Delhi), Hewlett Packard India v Addl CIT (ITA No 5417/DEL/04) and Mahanagar Telephone Nigam Ltd v CIT (187 CTR 177). In the recent case of as KLM Royal Dutch Airlines v DCIT (1 SOT 659 -Delhi ITAT - bench C), it was held that the tax officer was not justified in attaching the bank account of the assessee for recovery of the demand during the pendency of the appeal. Glaxo Smithkline Asia (2 SOT 457 - Delhi), Hewlett Packard India v Addl CIT (ITA No 5417/DEL/04) and Mahanagar Telephone Nigam Ltd v CIT (187 CTR 177). In the recent case of as KLM Royal Dutch Airlines v DCIT (1 SOT 659 -Delhi ITAT - bench C), it was held that the tax officer was not justified in attaching the bank account of the assessee for recovery of the demand during the pendency of the appeal. No recovery till statutory period of filing appeal before ITAT expires Glaxo Smithkline v. Addl CIT 20SOT 457(Del) & 256 ITR 698. No recovery till statutory period of filing appeal before ITAT expires Glaxo Smithkline v. Addl CIT 20SOT 457(Del) & 256 ITR 698. CIT(A) has power – 157 CTR 275 ( P & H), 239 ITR 871 (Gau), 208 ITR 676 (Mad ) CIT(A) has power – 157 CTR 275 ( P & H), 239 ITR 871 (Gau), 208 ITR 676 (Mad )

22. Ajat Wadhwa, FCA 22 The Kerala High Court has held in the case of Gajanana Agencies v. ITO (1994) 210 ITR 865 (Ker.) that section 220(6) confers power of the assessing authority to keep the Recovery proceedings in abeyance till the disposal of the first appeal with or without conditions. An order allowing the petitioner to pay the demand in a number of instalments is not an order contemplated under section 220(6). Such an order is another mode of Enforcing the recovery of tax. The Kerala High Court has held in the case of Gajanana Agencies v. ITO (1994) 210 ITR 865 (Ker.) that section 220(6) confers power of the assessing authority to keep the Recovery proceedings in abeyance till the disposal of the first appeal with or without conditions. An order allowing the petitioner to pay the demand in a number of instalments is not an order contemplated under section 220(6). Such an order is another mode of Enforcing the recovery of tax. No recovery proceedings till 154 application disposed off - Sultan Leather Furnishers 191 ITR 179 (All). No recovery proceedings till 154 application disposed off - Sultan Leather Furnishers 191 ITR 179 (All).

23. Ajat Wadhwa, FCA 23 To To Sir, Sir, Sub: Stay of Demand – AY ____________ Sub: Stay of Demand – AY ____________ In respect of the aforesaid assessment year, the assessee had returned an income of Rs. __________. In assessment, the income was assessed at Rs. _______________. The main additions were as under: - In respect of the aforesaid assessment year, the assessee had returned an income of Rs. __________. In assessment, the income was assessed at Rs. _______________. The main additions were as under: - The assessee has filed an appeal before the CIT (A) _______, New Delhi against the order of the Assessing Officer. Copy of the appeal along with the grounds taken is enclosed for your kind consideration. The assessee has filed an appeal before the CIT (A) _______, New Delhi against the order of the Assessing Officer. Copy of the appeal along with the grounds taken is enclosed for your kind consideration. It is submitted that on merits the additions made by the Assessing Officer are not sustainable in law and on facts. The brief reasons for such an assertion are given as under: - It is submitted that on merits the additions made by the Assessing Officer are not sustainable in law and on facts. The brief reasons for such an assertion are given as under: - Your kind attention is invited to the judgment of the Hon’ble Delhi High Court in the case of Soul….wherein while interpreting the Instruction No. 1914 of 1993 dated 02.12.1993 it has been held that disputed demands should be held in abeyance when the assessed income is say twice the returned income or more. Your kind attention is invited to the judgment of the Hon’ble Delhi High Court in the case of Soul….wherein while interpreting the Instruction No. 1914 of 1993 dated 02.12.1993 it has been held that disputed demands should be held in abeyance when the assessed income is say twice the returned income or more.

24. Ajat Wadhwa, FCA 24 From the discussion as regards the merits of the case, your goodself will observe that there is a dispute about the interpretation of law in respect of grounds no. ___________, ___________ and ________. The __________ High Court is squarely on the issue in dispute and is in favour of the assessee. Besides, the ground nos. _________, ________ and _________ have been decided in favour of assessee in an earlier order by the learned CIT (A) __________ ITAT. The Hon’ble CBDT vide Instruction No. 1914 of 1993 dated 02.12.1993 have opined that the demand may be stayed if the dispute is about interpretation of law or where the issue in earlier order is decided in favour of the assessee. The ground mentioned above a squarely covered by the Circular of the Hon’ble CBDT and it is prayed that in respect of the demand arising on account of the said grounds stay may be granted. From the discussion as regards the merits of the case, your goodself will observe that there is a dispute about the interpretation of law in respect of grounds no. ___________, ___________ and ________. The __________ High Court is squarely on the issue in dispute and is in favour of the assessee. Besides, the ground nos. _________, ________ and _________ have been decided in favour of assessee in an earlier order by the learned CIT (A) __________ ITAT. The Hon’ble CBDT vide Instruction No. 1914 of 1993 dated 02.12.1993 have opined that the demand may be stayed if the dispute is about interpretation of law or where the issue in earlier order is decided in favour of the assessee. The ground mentioned above a squarely covered by the Circular of the Hon’ble CBDT and it is prayed that in respect of the demand arising on account of the said grounds stay may be granted. Your goodself will also appreciate that the assessee is under going acute financial problems. The business has virtually come to a stand still, the banks are overdrawn, debts are increasing becoming doubtful and the fixed expenses are proving burden some. Under these circumstances, recovery of demand will spell ruin for the assessee. Even otherwise, it would be in the interest of justice that the Department should grant at least one opportunity to contest the additions made by the assessee before the first Appellate Authority before any recovery is affected. Your goodself will also appreciate that the assessee is under going acute financial problems. The business has virtually come to a stand still, the banks are overdrawn, debts are increasing becoming doubtful and the fixed expenses are proving burden some. Under these circumstances, recovery of demand will spell ruin for the assessee. Even otherwise, it would be in the interest of justice that the Department should grant at least one opportunity to contest the additions made by the assessee before the first Appellate Authority before any recovery is affected.

25. Ajat Wadhwa, FCA 25 The Hon’ble CBDT vide their Instruction No. 1914 of 1993 dated 02.12.1993 has directed that the Assessing Officer, while considering the situation for treating the assessee to be not in default to would consider all relevant factors having a bearing of a demand raised and communicate his decision to the assessee in the form of a speaking order. The Hon’ble CBDT vide their Instruction No. 1914 of 1993 dated 02.12.1993 has directed that the Assessing Officer, while considering the situation for treating the assessee to be not in default to would consider all relevant factors having a bearing of a demand raised and communicate his decision to the assessee in the form of a speaking order. In view of the aforesaid submissions, it is prayed that the demand raised in assessment be kept in abeyance till the disposal of appeal by the first Appellate Authority namely CIT (A) _______________. In view of the aforesaid submissions, it is prayed that the demand raised in assessment be kept in abeyance till the disposal of appeal by the first Appellate Authority namely CIT (A) _______________. For this act of kindness the appellant shall ever remain grateful. For this act of kindness the appellant shall ever remain grateful.

26. Ajat Wadhwa, FCA 26 Provisional Attachment S 281B During pendency of asstt/reasstt proceedings. During pendency of asstt/reasstt proceedings. AO to be of opinion – to protect interest of revenue – Assessee about to dispose of property to thwart the collection of demand. AO to be of opinion – to protect interest of revenue – Assessee about to dispose of property to thwart the collection of demand. Attachment of immovable property - bank and stocks to be last resort – should not have irreversible detrimental effect on business. 239 ITR 337 (Bom) Attachment of immovable property - bank and stocks to be last resort – should not have irreversible detrimental effect on business. 239 ITR 337 (Bom) Previous approval of CIT or CCIT. Previous approval of CIT or CCIT. Max period of 2 yrs. Max period of 2 yrs. Property can’t be attached and sold for income tax arrears of husband. 248 ITR 785 and 214 ITR 326. Property can’t be attached and sold for income tax arrears of husband. 248 ITR 785 and 214 ITR 326.