CS Professional · Advanced Direct Tax Laws and Practice · Appeals
Under the Income-tax Act, 2025 (June 2027 session), the Commissioner (Appeals) is hearing an appeal against a penalty order. Which statement about his powers is correct?
In a penalty appeal, the Commissioner (Appeals) may confirm or cancel the order, or vary it to enhance or reduce the penalty. Enhancement is allowed but only after the appellant has been given a reasonable opportunity of showing cause against it.
- AHe may confirm or cancel the order, or vary it to enhance or reduce the penaltyCorrect
- BHe may only confirm or cancel the penalty and cannot vary the amount
- CHe may reduce the penalty but cannot enhance it under any circumstances
- DHe may enhance the penalty without giving the appellant any opportunity of being heard
Explanation
Section 360(1)(d) allows the authority to confirm or cancel a penalty order or vary it to enhance or reduce the penalty. Under section 360(2), enhancement requires a reasonable opportunity of showing cause. So the options denying variation, denying enhancement or dispensing with the hearing are wrong.
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