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In Bhubneshwar Stock Exchange v. Union of India (2004) 137TAX 318 the demand in dispute related to issues that had been decided in assessee’s own case in its favour by Commissioner (Appeals) and the assessee pleaded for stay of disputed demand on the basis of CBDT Circular No/ 530 dated 03.03.1989. The assessing officer however rejected the application for stay. The Orissa High Court held that the Board has issued instructions from time to time as to how the discretion available u/s 220(6) will be exercised by the assessing officer in different situations. The Board has issued the instruction in Circular No. 530, dated 06.03.1989 that where the demand in dispute relates to issue that have been decided in favour of the assessee’s own case, the assessee should be treated as not being in default in respect of the amount in dispute in appeal keeping in mind the well –settled principle of justice and equity. Those instructions have not been superseded but reiterated and claimed by the Board in its Circular No. 589, dated 16.1.1991.

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