| COURT: | Madras High Court |
| CORAM: | Anita Sumanth J |
| SECTION(S): | 220(6) |
| GENRE: | Domestic Tax |
| CATCH WORDS: | stay of demand |
| COUNSEL: | S. Sathiyanarayanan |
| DATE: | February 13, 2019 (Date of pronouncement) |
| DATE: | March 23, 2019 (Date of publication) |
| AY: | 2018-19 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 220(6) Stay of Demand: The ‘trinity’ of prima facie case, financial stringency & balance of convenience are basic tenets which are indispensable in consideration of a stay petition. The CBDT's Circulars & Instructions are in the nature of guidelines & cannot substitute or override the basic tenets. The AO is required to assist a taxpayer in every reasonable way. Even if the assessee has not specifically invoked the three parameters for grant of stay, it is incumbent upon the AO to do so & pass a speaking order | |
The Circulars and Instructions as extracted above are in the nature of guidelines issued to assist the assessing authorities in the matter of grant of stay and cannot substitute or override the basic tenets to be followed in the consideration and disposal of stay petitions. The existence of a prima facie case for which some illustrations have been provided in the Circulars themselves, the financial stringency faced by an assessee and the balance of convenience in the matter constitute the ‘trinity’, so to say, and are indispensable in consideration of a stay petition by the authority
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