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CMA Final · Direct Tax Laws and International Taxation · GAAR

Which statement about the Approving Panel under GAAR is correct?

The Approving Panel is chaired by a High Court judge, sitting or retired, with a senior revenue officer and an academic or scholar knowledgeable in direct taxes as members. Its directions are binding on the tax authorities, and it acts on reference from the Commissioner.

  1. AIt is headed by a retired High Court judge as Chairperson and includes members from the Income-tax Department and an academic or scholar with expertise in matters such as direct taxesCorrect
  2. BIt consists solely of three Chief Commissioners
  3. CIts directions are not binding on the Assessing Officer
  4. DIt can only act when the assessee requests it

Explanation

The Approving Panel is chaired by a High Court judge (sitting or retired) with one member from the Indian Revenue Service not below Chief Commissioner rank and one academic or scholar with special knowledge of matters such as direct taxes. Its directions bind the assessing authority and the Commissioner, so the options saying otherwise are wrong.

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