Grievance Redressal: formula sheet

Key formulas

Draft order trigger

AO proposes variation prejudicial to eligible assessee → draft order must be forwarded first

Section 275(1). Applies only to an eligible assessee.

Eligible assessee

(i) variation arises from TPO order under section 166(6); or (ii) non-resident (not a company) or foreign company

Section 275(17)(b). Persons in section 292(1) or 295 are excluded under section 275(18).

Assessee's response time

Within 30 days of receipt of draft order: accept, or object to DRP and AO

Section 275(2). Objections go to both the DRP and the AO.

Order on acceptance or no objection

Final order within one month from the end of the month of acceptance or of expiry of the 30-day period

Section 275(4)(a), as substituted w.e.f. 1-4-2026.

Time limit for DRP directions

Not after nine months from the end of the month in which the draft order is forwarded

Section 275(13).

Order after DRP directions

Final order within one month from the end of the month in which the directions are received, without further hearing of the assessee

Section 275(14)(a).

DRP powers

Confirm, reduce or enhance; no set aside; no direction for further enquiry and passing of order

Section 275(8).

Appeal route

Order passed per DRP directions → Appellate Tribunal (section 362(1)(d)); excluded from CIT(A) under section 357(d) and (e)

Tribunal appeal within two months from the end of the month of communication (section 362(3)).

Waiver of penalty: concealment cases

Additional income-tax = 100% × tax payable on under-reported income

Section 440(1)(b): applies where penalty was levied in the circumstances in section 439(11)(a) to (f). Paid within the period in the notice of demand, in lieu of penalty.

Waiver of penalty: misreporting case

Additional income-tax = 120% × tax payable on under-reported income

Section 440(1)(c): applies where penalty was levied in the circumstances in section 439(11)(g). Paid within the notice of demand period.

Time limit for application under section 440

Within 1 month from the end of the month in which the order is received

Section 440(2). Example: order received on 12 July, application due by 31 August.

Decision on application

Order accepting or rejecting within 3 months from the end of the month of receipt

Section 440(5). Rejection needs a hearing (section 440(6)). The order is final (section 440(7)).

Immunity from prosecution by the Central Government

Immunity conditional on full and true disclosure of the whole circumstances

Section 519(1). Withdrawn if conditions are broken, concealment continues or false evidence is given (section 519(3)); the person can then be tried and penalised (section 519(4)).

High Court appeal: condition

Appeal lies from Tribunal order only if substantial question of law is involved

Section 365(1). The High Court must be satisfied and must formulate the question (365(4)).

High Court appeal: time limit

120 days from receipt of the order

Section 365(2)(a). Late appeal admissible on sufficient cause (365(3)). Form: memorandum stating the question precisely.

Who can appeal to High Court

Assessee or PCCIT / CCIT / PCIT / CIT

Section 365(2).

Revision: limit on own motion

No suo motu revision if order is more than 1 year old

Section 378(2).

Revision: assessee's application

Within 1 year of communication or knowledge, whichever is earlier; fee ₹500

Section 378(3), (6). Delay condonable for sufficient cause (378(4)).

Revision: outcome

Order must not be prejudicial to the assessee

Section 378(1)(c). Declining to interfere is not prejudicial (378(11)(b)).

Revision: bar

No revision where appeal lies and time not expired, right not waived, or appeal already made

Section 378(5).

Disposal time for assessee's revision application

Within 1 year from end of the financial year of application

Section 378(7). Extended to 60 days if remaining time is less (378(9)).

Identical question: department's appeal after final decision

60 days to Tribunal or 120 days to High Court from communication of the final order

Section 376(6). Application to be filed within 120 days of receiving the order (376(3)).

Rectification time limit (section 287(8))

No amendment after 4 years from the end of the financial year in which the order or intimation was passed

Subject to the exception in section 288. Applies to the authority's own motion and to taxpayer requests.

Disposal of rectification application (section 287(9))

Order within 6 months from the end of the month in which the application is received

The order may amend or refuse the claim.

Notice before adverse amendment (section 287(4))

Notice of intention + reasonable opportunity of being heard

Needed where the amendment enhances assessment, reduces refund or increases liability.

Tribunal rectification (section 363(2))

Within 6 months from the end of the month in which the order was passed; fee ₹50 for assessee's application

Mistake may be brought by the assessee or the Assessing Officer. Adverse amendment needs an opportunity of being heard.

Advance ruling rejection grounds (section 384(3))

Reject if question is (a) pending before authority, Tribunal or court, (b) fair market value of property, (c) prima facie designed for tax avoidance

Exceptions exist for resident applicants under section 380(b)(iii), and for (c) also section 380(b)(iv) applicants. Rejection needs a hearing and reasons (section 384(4)).

Advance ruling timeline and appeal

Ruling within 6 months of application; appeal to High Court within 60 days, plus up to 30 days if sufficient cause

Sections 384(6) and 389(1) and (2).

Quick revision

• An appeal to the Appellate Tribunal under section 362 must be filed within two months from the end of the month in which the order is communicated.
• The Commissioner can direct the Assessing Officer to appeal to the Tribunal against an order of the Commissioner (Appeals) if he objects to it.
• Cross-objections can be filed within 30 days of receiving notice of the other party's appeal, even if that party had not appealed earlier.
• The Tribunal can admit a late appeal or cross-objections if there is sufficient cause for the delay.
• Tribunal fee: ₹500 up to ₹1,00,000 income; ₹1,500 above ₹1,00,000 up to ₹2,00,000; 1% of assessed income above ₹2,00,000, capped at ₹10,000.
• No fee is payable for the department's appeal or for cross-objections; a stay application carries a fee of ₹500.
• Section 365 covers appeals to the High Court and section 367 covers appeals to the Supreme Court.
• Section 375: an assessee may give a declaration that he will not raise an identical question of law if the final decision in the other case is applied to his case.
• An order admitting or rejecting a claim under section 375(3) is final and cannot be questioned in appeal or revision.
• Section 376: a collegium of two or more senior officers may tell the Commissioner not to appeal now where an identical question is pending; the application is due within 120 days.
• Under section 376(6), a later appeal is due within 60 days to the Tribunal or 120 days to the High Court from communication of the final decision.
• Always use Income-tax Act, 2025 section numbers and the tax year 2026-27 for this exam.

Common mistakes

• Treating every assessee as eligible for the DRP route. Fix: Quote section 275(17)(b): TPO-linked variation, non-resident non-company, or foreign company. Check the exclusions.
• Counting the nine-month limit from the date of the draft order. Fix: Take the last day of the month in which the draft order is forwarded, then add nine months.
• Treating the Settlement Commission as the current forum. Fix: Write that the Commission is historical and the Interim Board handles settlement now. Mention section 360(1)(c) as the only trace in the supplied text.
• Applying 100% additional tax in a misreporting case. Fix: Clauses (a) to (f) of section 439(11) carry 100%. Clause (g) carries 120%.
• Saying the High Court appeal lies on any ground, including facts. Fix: Write that the appeal needs a substantial question of law, formulated by the Court.
• Using 60 days for the High Court appeal. Fix: High Court is 120 days under section 365(2)(a). The 60 days applies to the Tribunal in section 376(6).
• Counting four years from the date of the order. Fix: Count from the end of the financial year in which the order or intimation was passed.
• Allowing rectification of a matter decided in appeal. Fix: Section 287(2) excludes matters considered and decided in appeal or revision.

Exam tips

• Learn the four time limits as a set: 30 days, one month, nine months, one month. Examiners test which period starts where.
• In case studies, first decide eligibility. A resident Indian company with no TPO variation has no DRP route, so say so.
• Always write the section number (275 for the process, 362 for the Tribunal appeal) next to each conclusion.
• For MCQs, watch for traps: DRP can enhance, cannot set aside, has three members, and its directions bind the AO.
• Remember the 2026 substitution of sub-sections (4) and (14), which tie the time limits to the draft order being forwarded within the time allowed under section 286.
• Learn the 100% versus 120% split with the clause ranges; it is a favourite MCQ.
• Write the time limits exactly: one month from the end of the month, three months for the decision.
• In case questions, tick each condition in a line before giving the conclusion.