CS Professional · Advanced Direct Tax Laws and Practice · Appeals
Under the Income-tax Act, 2025 (June 2027 session), the Commissioner (Appeals) proposes to reduce the refund claimed in an appeal by Kaveri Textiles Pvt Ltd. What must he ensure before doing so?
He must ensure the appellant has had a reasonable opportunity of showing cause against the reduction of refund. Section 360(2) imposes this natural-justice safeguard on enhancement of assessment or penalty and on reduction of refund; consent, Board approval or an Assessing Officer appeal is not required.
- AThe appellant has had a reasonable opportunity of showing cause against the reduction of refundCorrect
- BThe appellant has given written consent to the reduction
- CThe Board has approved the reduction in advance
- DThe Assessing Officer has filed a separate appeal against the refund
Explanation
Section 360(2) bars the authority from enhancing an assessment or penalty, or reducing the amount of refund, unless the appellant has had a reasonable opportunity of showing cause. Consent, Board approval or an AO appeal is not required by the section.
Did you get it right without looking?
One question tells you little. A timed set on Appeals shows your real accuracy, how long you take and where you lose marks.
More Appeals questions
- Under the Income-tax Act, 2025, which of the following is correct about appeals directed by the Principal Commissioner or Commissioner to th…
- Under the Income-tax Act, 2025, the assessee files an appeal before the Appellate Tribunal and the Assessing Officer receives notice of it. …
- Under the Income-tax Act, 2025 (June 2027 session), the Principal Commissioner objects to an order of the Commissioner (Appeals) and directs…
- Meera Exports Ltd claims that a question of law in its assessment for one tax year is identical with one pending before the High Court in an…
- Where the Supreme Court varies or reverses the High Court's judgment in an appeal under section 367 of the Income-tax Act, 2025, how is effe…
- Under the Income-tax Act, 2025, the Assessing Officer receives notice that the assessee has appealed to the Appellate Tribunal against an or…