Procedure For Filing Stay Petition under Income Tax

A stay petition is a request made in accordance with established legal principles, filed in an appeals court, exhorting the court to cancel or modify the decision of a lower court. A stay petition can be filed with the

Income Tax Appellate Authority for any order of recovery of demand of tax, interest, penalty or fine. In this article, we look at the procedure for filing a stay petition under the Income Tax Act.

Filing Stay Petition

Rule 35 A(1) of Income Tax Appellate Tribunal Rules, 1963 states that every application for stay of recovery of demand of tax, interest, penalty, fine, or the likes of it, must be presented in triplicate by the applicant. The applicant is supposed to submit the same to the registrar or assistant registrar, by post or either in person or by an agent duly authorized by the applicant. The mode of applications for stay of recovery differs in accordance with the various enactments and type of recovery order passed.

Income Tax Stay Petition

Income tax stay petition must be typed in one side of the paper in a neat and tidy manner, and the medium of communication must be English. The following are some of the major information that must be presented professionally on the stay application.

A brief account regarding the demand of the tax, interest, penalty, fine and sum or recovery which is ought to be stayed.
The outcome of the appeal filed before the Commissioner (Appeals) if any.
The accurate amount of demand, along with the amount undisputed therefrom and the outstanding amount.
The date of filing of appeal before the tribunal.
If any previous application under this provision was made to the revenue authorities concerned, the outcome of the same.
Reasons in brief for filing the application under this provision.
Whether or not the applicant is willing to offer security, and if willing, in what form?
The contents of the application should be supported with an affidavit sworn by the applicant or his duly authorized personnel.

The government fee for the filing of stay petition is Rs.500.

Order of Stay

According to the first proviso to Section 254(2A), the Appellate Authority, after considering the merits of the application submitted by the assessee, can pass an order of stay which doesn't exceed a period of 180 days from the date of order. The Appellate Tribunal would dispose of the appeal within the period specified in the order.
If the appeal is not disposed of within the specified time-limit, the Appellate Tribunal, based on an application made by the assessee in this behalf, and on the satisfaction that the delay is not attributable to the assessee, may extend the period of stay to a maximum permissible time-limit of 365 days.
If an appeal is not disposed of after the specified period of 180 days or by the maximum of 365 days, as the case may be, the period of stay will stand vacated after the due date, even if the delay in disposing of appeal is not attributed to the fault of the assessee. In rare cases, the Income Tax Appellate Tribunal has the power to grant a further extension beyond the period of 365 days if the delay in disposing of appeal is not attributable to assessee.

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Frequently Asked Questions

Common questions about Filing Stay Petition under Income Tax Act in India.

A stay petition is a request made to the Income Tax Appellate Authority to cancel or modify an order of recovery of demand of tax, interest, penalty, or fine. It is filed in accordance with established legal principles.

According to Rule 35A(1) of the Income Tax Appellate Tribunal Rules, 1963, a stay petition must be presented in triplicate by the applicant, either by post, in person, or through an authorized agent to the registrar or assistant registrar.

The stay petition should include a brief account of the demand, the outcome of any previous appeals, the exact amount of demand and the disputed/undisputed portions, the date of filing the appeal before the tribunal, any previous applications made, reasons for filing the petition, and willingness to offer security.

Yes, the government fee for filing a stay petition is Rs. 500.

Initially, the Appellate Authority can grant a stay order for a maximum period of 180 days from the date of the order. If the appeal is not disposed of within this period, the stay can be extended up to a maximum of 365 days on the assessee's application.

In rare cases, the Income Tax Appellate Tribunal has the power to grant a further extension beyond the period of 365 days if the delay in disposing of the appeal is not attributable to the assessee.

If the appeal is not disposed of within the specified period of 180 days or the maximum of 365 days, the period of stay will stand vacated after the due date, even if the delay in disposing of the appeal is not attributed to the fault of the assessee.

The stay petition must be typed neatly on one side of the paper, and the medium of communication must be English.

Yes, the contents of the stay petition application should be supported with an affidavit sworn by the applicant or their duly authorized personnel.

The article does not mention the option of filing a stay petition electronically. It states that the petition must be presented in triplicate by post, in person, or through an authorized agent.