CMA Final · Direct Tax Laws and International Taxation · Penalties and Prosecutions
An assessee applies under section 469(5) for waiver of penalties on grounds of genuine hardship. The Commissioner receives the application on 12 August 2026. By what date must the order accepting or rejecting it be passed under section 469(7)?
The order must be passed by 31 August 2027. Section 469(7) allows twelve months from the end of the month of receipt, and the application received on 12 August 2026 falls in August 2026, which ends on 31 August 2026.
- A31 August 2027Correct
- B12 August 2027
- C31 July 2027
- D30 September 2027
Explanation
The order must be passed within twelve months from the end of the month in which the application was received. The month of receipt is August 2026, ending 31 August 2026. Twelve months later is 31 August 2027. 12 August 2027 wrongly counts from the date of receipt.
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