As per guidelines the AO should grant the stay subject to payment of 15% of tax demanded. This was further modified vide CBDT's office memo dated.31st July 2017 where in payment of tax demanded is increased to 20%. Sub: Partial modification of Instruction No. 1914 dated 21.03.1996 to provide for guidelines for stay of demand at the first appeal stage. Instruction No. 1914 dated 21.03.1996 contains guidelines issued by the Board regarding procedure to be followed for recovery of outstanding demand, including procedure for grant of stay of demand. 2. Analysing CBDT's Office memorandum dated 29.02.2016 regarding stay of demand. Reference to the relevant paragraph in the Union Budget Speech 2016: For partial modification of Instruction No. 1914 dated 21.03.1996 to provide for guidelines for stay of demand at the first appeal stage: Thereafter, Instruction No.1914 was issued by the CBDT on 21.03.1996 and states as follows: 1. Recovery of outstanding tax demands [Instruction No. 1914 F. No. 404/72/93 ITCC dated 2-12-1993 from CBDT] The Board has felt the need for a comprehensive instruction on the subject of recovery of tax demand in order to streamline recovery procedures. CBDT on stay of demand Analysing CBDT's Office memorandum dated 29.02.2016 regarding stay of demand. Reference to the relevant paragraph in the Union Budget Speech 2016. For partial modification of Instruction No. 1914 dated 21.03.1996 to provide for guidelines for stay of demand at the first appeal stage. Reference: Board's O.M. of even number dated 29.2.2016 Instruction No. 1914 dated 21.3.1996 contains guidelines issued by the Board regarding procedure to be followed for recovery of outstanding demand, including procedure for grant of stay of demand. Indeed, it is embarrassing and an absurd situation that where the CBDT Instruction No. 1914 dated 21.03.1996 as modified from time to time allows the Assessing Officer (executive authority) under CBDT's Clarifications on Computation of Book Profits for Indian Accounting Standards compliant Companies. (ITAT Delhi) (Special Bench)ITA No 502/Del/2012] CBDT on guidelines for stay of demand [F. No.404/72/93-ITCC] Penalty under section 221 is levied only on arrears of tax, excluding interest under section 234A/B/C. A most comprehensive news channel for chartered accountants and other Professionals around the world The CBDT has issued instruction no. 02/2016 dated 15.02.2016 in which it has. directed assessing officers to pass rectifications orders in writing and serve a. copy on the assessee and not just make an entry on the AST system. Source: CBDT Instruction no 02/2016 dated 15.02.2016 *** CBDT directive regarding issue of online TDS certificates Recovery of outstanding tax demands [Instruction No. 1914 F. No. 404/72/93 ITCC dated 2-12-1993 from CBDT] The Board has felt the need for a comprehensive instruction on the subject of recovery of tax demand in order to streamline recovery procedures. Instruction No. 1914 dated 21.03.1996 issued by the Board is regarding procedure for recovery of outstanding demand. The subsequent office memoranda are partial modifications. 11. Instruction No. 1914 dated 21.03.1996 issued by the Board is regarding procedure for recovery of outstanding demand. The subsequent office memoranda are partial modifications. 11. The Central Board of Direct taxes in its circular No.530 dated 6-3-1989 [176 ITR St. (240) and Circ