INCOME TAX
INSTRUCTION NO. 12/2004
DATED 18-10-2004
Subject : Stay petitions before ITAT - Steps to be taken to protect the interests of Revenue - reg.
The petitions for stay of recovery of demand moved by the assessees before the Income-Tax Appellate Tribunal need to be accorded utmost priority in order to ensure collection of locked-up demand.
2. To protect the interests of Revenue, the Departmental Representatives should move written submissions before the ITAT opposing the grant of stay on applications filed by assessees.
2.1. It should also be submitted that stay granted, if any, should be conditional and covered by bank guarantee in favour of Revenue. While opposing the stay petitions, the Departmental Representatives should ensure that wherever the conditions prescribed under Rule 35A of the Appellate Tribunal Rules, 1963 are not met, the attention of the Bench is drawn in writing to sub rule (3) of the said Rule.
3. In cases where stay has been granted by ITAT, the Board desires that after examining the legal position involved in the matter, immediate steps should be taken on case to case basis by the jurisdictional Chief Commissioner of Income Tax / Director General of Income Tax (Investigation) / Commissioner of Income Tax / Director of Income tax (Investigation) to get the stay vacated or modified or to seek appropriate orders, on priority basis, by moving the jurisdictional High court.
4. These Instructions should be circulated amongst all officers for immediate and strict compliance.