Stay of income tax demand

Section 220(6) of the Act empowers the Assessing Officer ('AO') to use his discretion and grant the assessee a stay of demand (keep the recovery proceedings in abeyance) in cases where an appeal has been preferred by the assessee before the Commissioner of Income-tax (Appeals) [‘CIT(A)’] under section 246A of the Act. Accordingly, where an appeal has been preferred by the taxpayer, he can be granted a stay of demand by the AO till the disposal of appeal by the CIT(A) on an application made by the Assessee.