The Court held that 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( WP.No No. 3849 of 2019 and 4278 of 2019, dt. 13.02.2019) ( AY.2018- 19 )
Kannammal (Mrs.) v. ITO ( 2019) 413 ITR 390/ 263 Taxman 309 / 178 DTR 321/ 311 CTR 361(Mad)(HC), www.itatonline.org Jayanthi Seeman v. PCIT ( 2019) 413 ITR 390 (Mad)(HC), www.itatonline.org
S. 226 : Collection and recovery Stay of demand- 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.[ S.220(3) , 220 (6) ]