CPT V24P7-Art1 (Content).pmd - Taxmann

DIRECT TAX LAWS
638
CBDT needs to issue instructions to
CIT(A) to decide stay of demands
applications expeditiously
The author, in this well researched
article, has raised the issue of stay
of income-tax demands by the CIT(A)
during the course of pendency of appeals
before them. Number of High Courts have
held that the CIT(A) have such powers but
for unknown reasons (or may be on account
of some secret instructions from the
CBDT) no CIT(A) is exercising this power.
Two High Courts have even issued directions
to the CBDT for issuing instructions/
guidelines in this direction, but for some
unknown reasons, the CBDT is shying away
from doing so.
The author, in this article, has examined
the issue of stay of demands during the
pendency of appeals before the CIT(A) from
various angles and has clearly demonstrated
that the CIT(A) have powers to do so. This
exhaustive article on the subject can be of
great assistance for the taxpayers to press
their claims in this regard before the various
IT authorities.
INTRODUCTION
August 1 to 15, 2012 u TAXMANN’S CORPORATE PROFESSIONALS TODAY u Vol. 24 u 18
T.N. PANDEY
Ex-Chairman, CBDT
1. Article 265 of the Constitution of India
mandates that no tax shall be collected except
with the authority of law. Yet, there are umpteen
instances, year after year, where high-pitched
assessments are made with high additions by
the Assessing Officers (AOs), many of which
get knocked down in appeals. But the AOs
start action for collection of demands raised,
in a number of cases even by curtailing the
mandatory period of 30 days allowable for
payment under the Income-tax Act, 1961 (Act)
and even where demands have been secured
by attachment and other legal processes. This
tantamounts to underserved hardship to the
assessee. Coercive action is taken/threatened
for the collection of demand in cases where
the assessments made are, prima facie, on high
incomes unlikely to be sustained in appeals.