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CS Executive · Tax Laws and Practice · Procedural Compliance under Income Tax

Under section 469 of the Income-tax Act, 2025, an application for reduction or waiver of penalty for genuine hardship is received by the Commissioner on 10 March. Within what time must the order accepting or rejecting it be passed?

The order must be passed within twelve months from the end of the month in which the application was received, here March. Also, the application cannot be rejected without first giving the assessee an opportunity of being heard.

  1. AWithin six months from the end of the month of receipt
  2. BWithin twelve months from the end of the month of receipt, and rejection requires an opportunity of being heardCorrect
  3. CWithin twelve months from the date of receipt, and no hearing is needed for rejection
  4. DWithin twenty-four months, with hearing optional

Explanation

Section 469(7) requires the order within twelve months from the end of the month in which the application was received, and 469(8) bars rejection without giving the assessee an opportunity of being heard. So the period runs from 31 March, and hearing is mandatory before rejection.

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