CBDT Modifies Guidelines For Stay Of Demand By The AO

The CBDT has issued Office Memorandum dated 31st July 2017 by which it has amended the conditions stipulated in the earlier OM dated 29.02.2016 pursuant to which the AO is empowered to grant a stay of the outstanding demand till the disposal of the appeal by the CIT(A).

F. No. 404/72/93-ITCC
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, 31st July, 2017


Subject: Partial modification of Instruction No. 1914 dated 21.3.1996 to provide for guidelines for stay of demand at the first appeal stage.
Reference: Board’s O.M. of even number dated 29.2.2016

Instruction No. 1914 dated 21.3.1996 contains guidelines issued by the Board regarding procedure to be followed for recovery of outstanding demand, including procedure for grant of stay of demand.

Vide O.M. N0.404/72/93-ITCC dated 29.2.2016 revised guidelines were issued in partial modification of instruction No 1914, wherein. inter alia, vide para 4(A) it had been laid down that in a case where the outstanding demand is disputed before CIT(A), the Assessing Officer shall grant stay of demand till disposal of first appeal on payment of 15% of the disputed demand unless the case falls in the category discussed in para (B) thereunder. Similar references to the standard rate of 15% have also been made in succeeding paragraphs therein.

2. The matter has been reviewed by the Board in the light of feedback received from field authorities. In view of the Board’s efforts to contain over pitched assessments through several measures resulting in fairer and more reasonable assessment orders, the standard rate of 15% of the disputed demand is found to be on the lower side. Accordingly. it has been decided that the standard rate prescribed in O.M. dated 29.2.2016 be revised to 20% of the disputed demand, where the demand is contested before CIT(A). Thus all references to 15% of the disputed demand in the aforesaid O.M dated 29.2.2016 hereby stand modified to 20% of the disputed demand. Other guidelines contained in the O.M. dated 29.2.2016 shall remain unchanged.

These modifications may be immediately brought to the notice of all officers working in your jurisdiction for proper compliance.

(A.K. Sinha)
Director (ITCC)

One comment on “CBDT Modifies Guidelines For Stay Of Demand By The AO
  1. CA.Nikhilesh Begani says:

    Whether the modified guidelines be made applicable to earlier stay granted matters, when the proposed payment of demand was 15%?? Whether now, the assessees would be required to deposit the balance 5% stipulating cancellation of earlier stay orders??

2 Pings/Trackbacks for "CBDT Modifies Guidelines For Stay Of Demand By The AO"
  1. […] Instructions were, however, revised after a short period vide Instructions dated 31.07.2017. It was stated that rate of 15% was found to be on the lower side. Same was modified to 20%. The […]

  2. […] virtue of CBDT Office Memorandum dated 31.7.2017, the assessing authorities, as a matter of right, are demanding atleast 20% of the corresponding […]

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