Forget to file stay application

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Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2014 We have completed an assessment u/s 148 and the order is issued with requirement for payment of Demand of rs. 3,00,000/-. However we have made an appeal to the CIT against the order of IT officer. However we forgot to file stay application for demand raised by IT department and now they have ceased our bank account and we are unable to deal in that account. Please guide us what step should be taken now.. Is it possible to file stay application now?

CA. Nage Gowda

CA. Nage Gowda (Expert)
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08 July 2014
Right course of action for this may be filing writ petition before the Jurisdictional High Court. For this purpose you may consult any lawyer specializing in tax matters before the High Court.

One more option will be filing an stay application before the CIT(A). Note: Income tax Act does not confer any right to CIT(A) to stay demand, however in many decisions including the Supreme Court decisions it was held that CIT(A) may grant stay.

The last option will be filing delayed stay application u/s 220(6)before the AO. You may ask for de-freezing your bank account by providing sufficient bank guarantee.

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Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2014 Thank you very much sir. And the other question regarding the said issue is can IT officer refuse to accept the delayed stay application? We are not having sufficient fund to provide the bank guaranty as our business is in loss at present.