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CMA Final · Direct Tax Laws and International Taxation · Grievance Redressal

A taxpayer's grievance about an incorrect demand is pending with the Assessing Officer. Which approach is most appropriate to protect the taxpayer's legal rights?

The taxpayer should file the statutory appeal within the prescribed time and pursue the grievance simultaneously. A pending grievance does not stop limitation, so waiting for the officer's reply could make the appeal time-barred and cost the taxpayer the right to challenge the demand.

  1. AWait for grievance resolution and file an appeal only after the officer replies, regardless of the appeal deadline
  2. BFile the appeal within the statutory time limit while also pursuing the grievance, since the grievance does not stop limitationCorrect
  3. CWithdraw the grievance and pay the whole demand without protest
  4. DApproach the Ombudsman to stay the demand automatically

Explanation

Limitation for appeal runs independently of any grievance. Waiting risks the appeal becoming time-barred, so option A is wrong. The prudent course is to file the appeal on time and pursue the grievance in parallel.

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