CMA Final · Direct Tax Laws and International Taxation · GAAR
Which statement about the Approving Panel under the GAAR procedure is correct?
The Approving Panel is chaired by a current or former High Court judge, with an income-tax officer member and an expert academic member. Its directions on whether GAAR applies are binding on both the assessee and the Assessing Officer, not merely advisory.
- AIt is headed by a retired High Court judge as chairperson and its directions are binding on the assessee and the Assessing OfficerCorrect
- BIt is headed by the Assessing Officer and its view is only advisory
- CIt consists solely of Chartered Accountants nominated by ICAI
- DIt can be approached by the assessee only after paying the full disputed tax
Explanation
The Approving Panel is chaired by a person who is or has been a High Court judge, with a member from the Indian Revenue Service and an academic or scholar member. Its directions bind the assessee and the tax authority, so the advisory and ICAI-only options are wrong.
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