Case Law Analysis
|Income Tax Appellate Tribunal
Section 254(2A) IT Act | ITAT Grants Stay on Tax Demand Where Interest Component Exceeds Principal and 30% Deposit Made : ITAT Jabalpur
ITAT Jabalpur ruled that a 90-day stay on tax recovery is justified where the assessee has deposited 30% of the demand and the interest component constitutes the majority of the liability. The decision underscores the tribunal's discretion to grant relief under Section 254(2A) of the IT Act, particularly when financial hardship is demonstrated and CBDT circulars are invoked.