#Stay of Demand

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.

ITAT Kolkata reinforces that assessees must deposit at least 20% of the disputed tax demand to secure a stay under Section 254(2A) of the Income Tax Act, unless they can prove undue financial hardship. The ruling clarifies procedural compliance requirements for taxpayers seeking interim relief during appeals, impacting all direct tax litigation involving stay applications.

ITAT Bangalore grants partial stay on a ₹1.83 crore transfer pricing demand but mandates a 20% deposit under Section 254(2A) of the Income Tax Act. The ruling sets a precedent for conditional relief in tax appeals, balancing assessee hardship with revenue interests.