Section 220 of the Income-tax Act, 1961 - Collection and recovery of tax - When tax payable and when assessee deemed in default (Stay of demand) - Assessee sought stay of recovery of demand till disposal of its appeal before Commissioner (Appeals) - It was granted stay subject to depositing 15 per cent of demand - Stay order further permitted Assessing Officer to adjust any refund which may arise in favour of assessee company in any assessment year - Assessee contended that right to adjust refund was limited to amount directed to be deposited as a condition of stay - Revenue authorities opined that they were entitled to adjust any refund against total tax demand - Whether where in terms of stay order assessee was required to deposit 15 per cent of outstanding demand which figure attained finality, in such a case, revenue authorities had right to adjust any refund which might arise in favour of assessee in respect and to extent of said 15 per cent of demand only - Held, yes - Whether, therefore, plea raised by assessee was to be accepted - Held, yes [Para 27] [In favour of assessee]
