To,

The Commissioner of Income Tax (Appeals),

…………………………………………..

…………………………………………..

Subject: Request for Stay on Recovery of Demand Pending Disposal of Appeal u/s 220(6) of the Income Tax Act, 1961

Respected Sir/Madam,

We are filing this petition to seek a stay on the recovery of demand raised by the Income Tax Department u/s 147 read with Section 144B and Section 144 of the Income Tax Act, 1961, vide the assessment order dated ……………………..We have filed an appeal against the said order before your office, which is currently pending for adjudication.

The Case are as follows:

1. Appellant`s Name: …………………………………………..
2. Assessment Year: …………………….
3. PAN: ………………………………………..
4. Demand Amount:Rs.…………………….
5. Appeal Filed Date: …………………….
6. Appeal Reference Number: …………………….
7. Assessment Order Passed U/S: 147 r.w.s. 144B and 144 of the Income Tax Act, 1961

Reason for Stay of Demand

1. Genuine Financial Hardship: The appellant is facing severe financial hardship due to limited financial resources and is unable to make the mandatory pre-deposit of 20% of the disputed demand as per the provisions of Section 220(6) of the Income Tax Act, 1961. Payment of the pre-deposit would cause undue hardship and could disrupt the appellant`s business operations.
2. Prima Facie Case in Favour of Appellant: The appellant has a strong case on merits, and the assessment made u/s 147 r.w.s. 144B and 144 is unjustified. The reopening of the case u/s 147 was not in accordance with the law, and the procedural requirements u/s 144B were not followed adequately. Therefore, there is a reasonable chance of success in the appeal.
3. Balance of Convenience: The balance of convenience lies in favour of granting a stay on the recovery of demand, as irreparable damage would be caused to the appellant in case of coercive action by the department, which may render the appeal infructuous.

In view of the above, we humbly request your good office to kindly grant a stay on the recovery of the demand until the disposal of the appeal, without insisting on the pre-deposit of 20%, in the interest of justice and fair play.

Thank you.

Yours faithfully,

………………………..

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