it is important to have the figures of returned income
> > and assessed income to really make out a better case.
> >
> > 1. An application must be moved within 30 days of the service of the
> > order to remain compliant with section 221.
> >
> > 2. The application should be in complete detail with the following:
> >
> > (1) returned income
> >
> > (2) assessed income
> >
> > (3) the disputed additions
> >
> > (4) how your case is covered by the judgments
> >
> > (5) and how payment will jeopardize the business due to financial
> > constraints etc.
> >
> > 3. The AO's generally pass a short order rejecting the stay
> > application which is unjustified, and then move on to the Addl. CIT and
> > then CIT. In case not accepted you can take it up with CIT(A) who has the
> > powers to grant stay as an appellate authority.
> >
> > 4. In case the assessment has been framed at more than twice the
> > income you take cover of the Delhi HC orders in the Valvoline and Soul
> > which have confirmed the CBDT Circular that no recovery shall be made in
> > such cases till the disposal of the 1st appeal. This can also be
> > mentioned in the stay application. Some other judgments may also helpful
> > these are given below:
> >
> > (1) Instruction no. 1914 of 1993 dt. 02.12.1993
> >
> > (2) Circular No. 589 - Imp
> >
> > (3) 220 CTR 211 (Del) - Soul – V Important. Also discusses Valvoline
> >
> > (4) Valvoline
> >
> > (5) 216 CTR 139 – Subhash Chander
> >
> > (6) 258 ITR 291 – JCT Ltd.
> >
> > (7) 222 CTR 521 Taneja
> >
> > (8) 256 ITR 698 – Bongaigaon
> >
> > (9) RPG Mumbai
> >
> > (10) NO RECOVERY till 154 Application not disposed off – 191
> > ITR 179
> >
> > (11) Order of the AO should be speaking order – B R
> > Balakrishnan 119 Taxman 974 Bom
> >
> > (12) Maruti Udyog Ltd.
> >
> > 5. Also it is suggested:
> >
> > (1) move an application for early fixation of appeal with copy to CCIT
> > and CIT
> >
> > (2) keep your bank balance low and keep an alternate bank account ready
> > and operational
> >
> > (3) keep bank manager in good humor [image: ;)] as (a) he should inform
> > you of attachment and permit you to withdraw the available amounts before
> > attachment (b) In case of OD limits he can write back to the AO that
> > attachment is not possible as the limits have been granted to conduct
> > business and not payment of taxes – this will give you a couple of days to
> > make adjustments.
> >
> > 6. If possible apply for a rectification for as long as the
> > rectification application is pending no recovery can be made (see 191 ITR
> > 179)
> >
> > 7. I also bring to your notice the following directions of the CBDT:
> >
> > *CBDT Inst. 987. Prevention of unrealistic over-assessments** *
> >
> > *1. **Reference is invited to the Board's Instruction No.376
> > [F.No.277/2/70-IT(J)], dated the 1st February , 1972 and the earlier
> > instruction cited therein.*
> >
> > *2. **Instances continue to come to the notice of the board about
> > unrealistic over-assessments made by assessing officer under various direct
> > tax Acts. This causes unnecessary hardship to the assessees and tarnishes
> > the image of the Department; there is avoidable litigation and recovery
> > problems arise in respect of the consequential insupportable and
> > exaggerated tax demands.*
> >
> > *3. **The board would like therefore to impress once again upon the
> > commissioners that they should advise the assessing officers in their
> > charge to eschew unjustified over-assessments. The assessments have to be
> > made in the reasonable and fair manner after considering all the relevant
> > circumstances of the case. Even where an assessment has to be made ex
> > parte, the information available should be reasonably weighed and a proper
> > estimate made in the exercise of best judgments in the circumstances. There
> > should be no tendency to frame assessments even in such cases mechanically
> > on past basis, if there is evidence to the contrary e.g., the business of
> > the concern has become defunct or is in clearly adverse circumstance.*
> >
> > *4. **If unjustified over-assessments are avoided, this will inter
> > alia curtail the feature of exaggerated demands which unnecessarily inflate
> > our arrears figures.*
> >
> > *These instructions may be brought to the notice of all officers in the
> > charge and very careful watch kept over their compliances. The erring
> > officials should be properly advised and where necessary pulled up.[
> > F.No.246/27/73-A & PAC, dated the 27th July, 1973 from C.B.D.T].*
> >
> > and assessed income to really make out a better case.
> >
> > 1. An application must be moved within 30 days of the service of the
> > order to remain compliant with section 221.
> >
> > 2. The application should be in complete detail with the following:
> >
> > (1) returned income
> >
> > (2) assessed income
> >
> > (3) the disputed additions
> >
> > (4) how your case is covered by the judgments
> >
> > (5) and how payment will jeopardize the business due to financial
> > constraints etc.
> >
> > 3. The AO's generally pass a short order rejecting the stay
> > application which is unjustified, and then move on to the Addl. CIT and
> > then CIT. In case not accepted you can take it up with CIT(A) who has the
> > powers to grant stay as an appellate authority.
> >
> > 4. In case the assessment has been framed at more than twice the
> > income you take cover of the Delhi HC orders in the Valvoline and Soul
> > which have confirmed the CBDT Circular that no recovery shall be made in
> > such cases till the disposal of the 1st appeal. This can also be
> > mentioned in the stay application. Some other judgments may also helpful
> > these are given below:
> >
> > (1) Instruction no. 1914 of 1993 dt. 02.12.1993
> >
> > (2) Circular No. 589 - Imp
> >
> > (3) 220 CTR 211 (Del) - Soul – V Important. Also discusses Valvoline
> >
> > (4) Valvoline
> >
> > (5) 216 CTR 139 – Subhash Chander
> >
> > (6) 258 ITR 291 – JCT Ltd.
> >
> > (7) 222 CTR 521 Taneja
> >
> > (8) 256 ITR 698 – Bongaigaon
> >
> > (9) RPG Mumbai
> >
> > (10) NO RECOVERY till 154 Application not disposed off – 191
> > ITR 179
> >
> > (11) Order of the AO should be speaking order – B R
> > Balakrishnan 119 Taxman 974 Bom
> >
> > (12) Maruti Udyog Ltd.
> >
> > 5. Also it is suggested:
> >
> > (1) move an application for early fixation of appeal with copy to CCIT
> > and CIT
> >
> > (2) keep your bank balance low and keep an alternate bank account ready
> > and operational
> >
> > (3) keep bank manager in good humor [image: ;)] as (a) he should inform
> > you of attachment and permit you to withdraw the available amounts before
> > attachment (b) In case of OD limits he can write back to the AO that
> > attachment is not possible as the limits have been granted to conduct
> > business and not payment of taxes – this will give you a couple of days to
> > make adjustments.
> >
> > 6. If possible apply for a rectification for as long as the
> > rectification application is pending no recovery can be made (see 191 ITR
> > 179)
> >
> > 7. I also bring to your notice the following directions of the CBDT:
> >
> > *CBDT Inst. 987. Prevention of unrealistic over-assessments** *
> >
> > *1. **Reference is invited to the Board's Instruction No.376
> > [F.No.277/2/70-IT(J)], dated the 1st February , 1972 and the earlier
> > instruction cited therein.*
> >
> > *2. **Instances continue to come to the notice of the board about
> > unrealistic over-assessments made by assessing officer under various direct
> > tax Acts. This causes unnecessary hardship to the assessees and tarnishes
> > the image of the Department; there is avoidable litigation and recovery
> > problems arise in respect of the consequential insupportable and
> > exaggerated tax demands.*
> >
> > *3. **The board would like therefore to impress once again upon the
> > commissioners that they should advise the assessing officers in their
> > charge to eschew unjustified over-assessments. The assessments have to be
> > made in the reasonable and fair manner after considering all the relevant
> > circumstances of the case. Even where an assessment has to be made ex
> > parte, the information available should be reasonably weighed and a proper
> > estimate made in the exercise of best judgments in the circumstances. There
> > should be no tendency to frame assessments even in such cases mechanically
> > on past basis, if there is evidence to the contrary e.g., the business of
> > the concern has become defunct or is in clearly adverse circumstance.*
> >
> > *4. **If unjustified over-assessments are avoided, this will inter
> > alia curtail the feature of exaggerated demands which unnecessarily inflate
> > our arrears figures.*
> >
> > *These instructions may be brought to the notice of all officers in the
> > charge and very careful watch kept over their compliances. The erring
> > officials should be properly advised and where necessary pulled up.[
> > F.No.246/27/73-A & PAC, dated the 27th July, 1973 from C.B.D.T].*
> >
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