CA Final · Indirect Tax Laws · Returns
Under section 61, the officer informed Orion Components of discrepancies in its return. Orion accepted the discrepancies but did not take the corrective measure in its return for the month in which it accepted them. Orion gave no satisfactory explanation on any other point. Which statement is correct?
If a person accepts discrepancies but fails to correct them in the return for the month of acceptance, the proper officer may initiate appropriate action, including under sections 65, 66 or 67, or determine tax and dues under section 73 or 74 (or 74A).
- AThe proper officer may initiate appropriate action including under section 65, 66 or 67, or determine tax and dues under section 73 or 74Correct
- BThe officer must close the matter because Orion accepted the discrepancies
- CThe officer can act only after a further six months from acceptance
- DThe officer can only impose a late fee and nothing else
Explanation
Under section 61(3), action can follow where no satisfactory explanation is furnished within thirty days, or where the person, after accepting the discrepancies, fails to take corrective measures in the return for the month of acceptance. The officer may then initiate action including under sections 65, 66 or 67, or determine tax and dues under section 73 or 74 (or 74A). Acceptance alone does not end the matter, so closing it is wrong.
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