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CMA Intermediate · Direct and Indirect Taxation · Filing of Return of Income

A Board instruction fixes a monetary limit of Rs. 50 lakh for departmental appeals. The department files no appeal against an order for Vikram Ltd for tax year 2024-25 where the tax effect is Rs. 30 lakh. Which of the following is correct under Section 373?

The Board may fix monetary limits for departmental appeals, and not filing one for Vikram Ltd does not prevent the department from appealing the same issue in another tax year. Section 373(2) preserves that right, and Section 373(3) stops the assessee from claiming acquiescence.

  1. AThe Board's instruction is invalid unless it is approved by the Appellate Tribunal
  2. BThe department is permanently barred from appealing on that issue for any assessee
  3. CVikram Ltd may rely on the non-filing to claim the department has accepted the issue in all cases
  4. DThe Board may fix such limits, and non-filing does not stop the department appealing the same issue for Vikram Ltd for another tax yearCorrect

Explanation

Section 373(1) lets the Board fix monetary limits, and no approval by the Tribunal is required. Section 373(2) preserves the right to appeal on the same issue for the same assessee for other tax years and for other assessees. Section 373(3) bars the acquiescence argument, so the other options are wrong.

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