Tax notices
Stay of demand pending first appeal, Sec 220(6) (new Sec 411(12))
What this means, checked by a CA
An appeal does not stop the department collecting the tax. We apply to the Assessing Officer to hold back the disputed demand until CIT(A) decides, usually against a 20% deposit, argue for less where the case is strong, and escalate if the request is ignored.
₹4,999
One time, + 18% GST
- Delivered in 3 working days after the appeal is filed
- Due: As soon as the appeal is filed and before the demand due date (30 days from the demand notice) to avoid being treated as in default
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 6 items
Demand notice and assessment order
Amount, due date, issues
Form 35 appeal acknowledgement
Stay needs a pending appeal
Grounds and statement of facts
Shows a prima facie case
Cash flow and bank positionOptional
Proves financial hardship
Refunds pending or adjustedOptional
Counts towards the 20%
Earlier year orders on same issueOptional
Strengthens merits for lower deposit
DiscussionWhat we discuss · 5 items
Is the appeal filed and is the demand due date still ahead?
Stay needs pending appeal; avoids default
Can you pay 20% of the disputed demand now?
Standard condition under CBDT memoranda
Is the addition covered in your favour by earlier orders or courts?
Ground for stay below 20%
Have any refunds been adjusted against this demand?
Adjustment counts; excess over 20% can be claimed back
Has the AO started recovery, such as a bank notice?
Urgency; escalate or go to High Court
FormsForms we file · 6 items
Mark the demand as disputed with appeal details in Response to Outstanding Demand
Where: https://www.incometax.gov.in. Due: Within 30 days of the demand notice
Work out the amount to offer
20% of disputed demand, less refunds already adjusted and taxes paid against it
Where: Internal. Due: Before applying
Write and submit the stay application to the AO with merits, hardship and offer
Where: https://www.incometax.gov.in. Due: Before the demand due date
Pay the agreed portion by challan and give challan details to the AO
Where: https://www.incometax.gov.in. Due: As per stay order
If refused or not decided, apply for review to the Principal CIT or CIT
Where: Jurisdictional PCIT. Due: Promptly after rejection
If the order is non-speaking or 20% is treated as mandatory, consider a writ petition
Where: High Court. Due: Before coercive recovery
DeliverablesWhat you get · 3 items
Stay application and acknowledgement
When: Same day
Stay order or rejection explained
When: After AO decision
Refund of excess adjustment request
When: If refunds exceeded 20%
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