The assessee had filed an appeal before the Commissioner (Appeals), obtained a stay of demand under section 220(6) by depositing more than 20% of the disputed tax, and was consequently treated as not being in default; the Revenue could not adjust any refund due to the assessee against the stayed demand. Once the AO grants a stay and treats the assessee as not in default, the outstanding demand remains unenforceable during the subsistence of such stay. Accordingly, the adjustment of the refund for A.Y. 2024-25 against the disputed demand of A.Y. 2013-14 was impermissible, and the Revenue was directed to refund the amount so adjusted, except the amount voluntarily deposited by the assessee while seeking stay of demand. (AY. 2024-25)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 220: Collection and recovery of tax-Stay-Adjustment of refund-Pendency of appeal before CIT(A)-Refund cannot be adjusted against a demand stayed under section 220(6); once the assessee is treated as not in default, such recovery is impermissible-Directed to refund the amount. [S. 220(6), 245, Art. 226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-64460","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gLG","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64460","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=64460"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64460\/revisions"}],"predecessor-version":[{"id":64461,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64460\/revisions\/64461"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=64460"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=64460"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=64460"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}