Section 220 of the Income-tax Act, 1961—Collection and recovery of tax— It is incumbent upon the assessing officer to examine the existence of a prima facie case as well as call upon the assessee to demonstrate financial stringency, if any and arrive at the balance of convenience

Facts: Petitioner is an individual who has challenged an order rejecting his application for stay of demand passed in terms of the provisions of the Income-tax Act, 1961 as the Ao disposed the stay application by way of a cryptic non-speaking order.

Held, that notwithstanding that the assessee may not have specifically invoked the three parameters for the grant of stay, it is incumbent upon the assessing officer to examine the existence of a prima facie case as well as call upon the assessee to demonstrate financial stringency, if any and arrive at the balance of convenience in the matter but in the present matter as well, the impugned order does not deal with the aspects of prima facie case, financial stringency and balance of convenience. Hence, the impugned order is set aside.The Assessing Authority is directed to reconsider the stay application filed by the petitioner keeping in mind the order setting out the guidelines of the CBDT. - GANAPATHY HARIDAASS V/s ITO - [2020] 23 ITCD Online 156 (MAD)