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.
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.
Related Guides
Popular Post
Starting a small business can be a transformative venture, offering the exciting opportunity...
Tax deduction at source, shortly and popularly known as TDS, was introduced by the Income Tax...
Goods & Services Tax Certificate is issued to people who are registered under GST...
GST registration applies to all individuals and entities supplying goods or services in India. GST...
Gift tax in India is applied when the value of the received gift exceeds ₹50,000 in the...
The Union Budget 2025 has brought significant changes to India’s personal income tax structure, raising the...
The Goods and Services Tax (GST) is an indirect tax system introduced in India in 2017. It functions...
A trademark search is simply checking if another person or organization does not already own the...
Section 194H of the Income Tax Act in India mandates the deduction of Tax at Source (TDS) on commission or brokerage...
Section 80G Deduction is a facility available in the Income Tax Act which allows taxpayers to...
The Income Tax Department (ITD) has not provided specific guidance on crypto taxes for Indian investors. However...
Internal audit applicability is a critical concept for companies in India, impacting various...
In the business world, two main types of companies exist: private company and public company...
Ministry of Finance vide a Notification No 05/2022- Central Tax (Rate) dated 13.7.2022 has issued...
The Central Board of Indirect Taxes and Customs (CBIC) has recently announced an extension...
Depreciation is a key concept in finance and accounting. It helps us manage how the value of...
Form 10IA of the Income Tax Department must be filed by taxpayers claiming income tax deduction...
The Goods and Services Tax (GST) system in India has been a significant reform in the country's...
India's Gross Domestic Product (GDP) benefits significantly from the substantial...
The Finance Act, 2023 introduced the MSME 45-day payment rule under Section 43B(h) of the Income Tax Act...
The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, was announced by Union Finance Minister...