Stay of Demand Application Format — Section 220(6) Letter to the Assessing Officer
To,
{{officer_designation}}
Date: 31 July 2026
Application under Section 220(6) of the Income-tax Act, 1961 — Stay of Demand Pending Appeal
Assessee: {{client_name}} | PAN: {{client_pan}} | Assessment Year: {{assessment_year}}
Ref: Demand of ₹ {{demand_amount}} raised vide notice u/s 156 pursuant to order dated
Respected Sir / Madam,
1. The assessment for AY {{assessment_year}} was completed vide the order cited above, raising a demand of ₹ {{demand_amount}}.
2. Aggrieved by the additions made in the said order, the assessee has filed an appeal before the CIT(A) / JCIT(A) in Form No. 35 on {{appeal_date}} (acknowledgement enclosed). The appeal is pending disposal.
3. In terms of section 220(6), the assessee prays that it not be treated as an assessee in default in respect of the disputed demand pending disposal of the first appeal, on the following grounds:
(a) Prima facie case — ____________ [state, in two or three sentences, why the additions are unsustainable — e.g. the addition is covered in the assessee's favour by a jurisdictional High Court / ITAT decision, or the addition ignores evidence on record].
(b) High-pitched assessment — the assessed income is ____________ times the returned income, warranting a more lenient view on recovery pending appeal.
(c) Financial hardship — ____________ [state liquidity position with figures: bank balances, committed payroll / statutory dues, working-capital constraints; enclose latest financial statements and bank statements].
(d) Balance of convenience — the demand, if recovered now and the appeal succeeds, would tie up funds in a refund cycle, whereas the revenue's interest is fully protected by the payment offered below.
4. Without prejudice to the above, and in line with the CBDT Office Memorandum F.No. 404/72/93-ITCC dated 31.07.2017, the assessee submits the following payment position against the disputed demand:
| Particulars | Amount (₹) | Remarks |
|---|
| Total demand raised u/s 156 | {{demand_amount}} | |
| Amount already paid / adjusted (challan / refund adjustment details) | ____________ | Challan copies enclosed |
| Amount offered to be paid for stay | ____________ | Being 20% of the disputed demand / ____________ [state the lower percentage sought and why, if applicable] |
| Balance demand for which stay is sought | ____________ | |
- Drafting hint: where the addition is covered by a binding precedent in the assessee's favour, or the assessment is high-pitched, ask for stay on payment of less than 20% — the OM itself contemplates the AO referring such cases to the Pr.CIT.
- Drafting hint: always enclose the Form 35 acknowledgement, the demand notice, challans, and hardship evidence — a stay application without the appeal acknowledgement is routinely rejected.
PRAYER
The assessee prays that: (i) the balance demand be stayed and the assessee not be treated as an assessee in default under section 220(6) till disposal of the appeal by the CIT(A) / JCIT(A); (ii) no coercive recovery measures under sections 220(4), 222 or 226 be initiated in the interim; and (iii) refunds due, if any, not be adjusted against the disputed demand under section 245 without prior intimation and an opportunity of being heard.
Thanking you,
Yours faithfully,
For {{client_name}}
_______________________________
Authorised Signatory
Address: {{client_address}}
Encl.: Copy of Form 35 acknowledgement; demand notice u/s 156; challans; financial statements; ____________
