When the appeal is pending before the CIT(A), the assessee moved the application to stay the demand . The AO directed the Assessee to deposit the 20% of tax in dispute . Application filed before the PCIT was also rejected . On writ the Court held that , Revenue authorities cannot pass an order mechanically referring the instruction no 1914 dt. 21-03 1996,directing the Assessee to pay 20 percent of amount during pendency of appeal before CIT (A). High Court set aside the order of PCIT and reamnded to the PCIT to reconsider the application of stay and decide in accordance with law .( AY.2012-13, 2015-16)
Charishma Hotels ( P) Ltd v. ITO ( 2018) 255 Taxman 187/ 305 CTR 621/ ( 2019) 410 ITR 96 ( Karn) (HC)
S. 220 : Collection and recovery – Assessee deemed in default – Stay- Revenue authorities cannot pass an order mechanically referring the instruction no 1914 dt. 21-03 1996,directing the Assessee to pay 20 percent of amount during pendency of appeal before CIT (A)- Order of PCIT is set aside and reamnded to the PCIT to reconsider the application of stay and decide in accordance with law .[ S.251 ]