Skip to content

CMA Final · Direct Tax Laws and International Taxation · Assessment Procedure including Dispute Resolution Process

A draft order was forwarded to an eligible assessee, and the Panel's directions under section 275(5) were received by the Assessing Officer on 12 August. By when must the Assessing Officer complete the assessment in conformity with the directions, ignoring the overall limit under section 275(13)?

The Assessing Officer must complete the assessment by 30 September. Section 275(14)(a) gives one month from the end of the month in which the Panel's directions are received, and August ends on 31 August. Counting one month from 12 August would use the wrong base.

  1. A30 September, being one month from the end of the month of receiptCorrect
  2. B12 September, being one month from the date of receipt
  3. C31 August, being the end of the month of receipt
  4. D31 October, being two months from the end of the month of receipt

Explanation

Section 275(14)(a) allows one month from the end of the month in which the direction is received. The direction was received in August, so the month ends on 31 August and one further month gives 30 September. Counting from the receipt date is the wrong base.

Did you get it right without looking?

One question tells you little. A timed set on Assessment Procedure including Dispute Resolution Process shows your real accuracy, how long you take and where you lose marks.

Practise Assessment Procedure including Dispute Resolution ProcessFree diagnostic mock

More Assessment Procedure including Dispute Resolution Process questions