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Dispute Resolution Panel(DRP) - Section 144C - Income Tax - Ready Reckoner - Income TaxExtract Dispute Resolution Panel(DRP) - Section 144C Meaning of Dispute Resolution Panel Dispute Resolution Panel means a collegium comprising of three [Principal Commissioners or] Commissioners of Income-tax constituted by the Board for this purpose; Meaning of Eligible Assessee Eligible assessee means:- Any person in whose case the variation referred to in section 144C(1) arises as a consequence of the order of the Transfer Pricing Officer passed under section 92CA(3) ; and Any non-resident not being a company, or a foreign company. Section 144C - Reference to Dispute Resolution Panel 1. The Assessing officer while making assessment under section 143(3) / 147 / 153A is bound to follow the procedure of forwarding a draft assessment order in the following cases: Foreign Co. or Non-resident in whose case AO wants to make variation which is prejudicial to assessee. Other Assessee in whose case variation in total income arises on account of order of TPO passed u/s 92CA . 2. AO shall forward a draft of the proposed order of assessment to the eligible assessee. 3. Within 30 days from the date of receipt of draft order, the assessment shall - a) File his acceptance to AO, or b) File his objection to AO DRP. 4. If assessee files his acceptance then AO shall pass the final order within 1 month from the end of the month in which acceptance is received. 5. If the assessee files objection, then DRP shall issue direction with 9 months from the end of the month in which draft order is forwarded to Assessee, as it thinks fit, for the guidance of the Assessing Officer to enable him to complete the assessment. 6. The Dispute Resolution Panel shall issue the directions referred to in sub-section (5), after considering the following, namely:- (a) draft order; (b) objections filed by the assessee; (c) evidence furnished by the assessee; (d) report, if any, of the AO, VO or TPO or any other authority; (e) records relating to the draft order; (f) evidence collected by, or caused to be collected by, it; and (g) result of any enquiry made by, or caused to be made by, it. 7 The DRP may, before issuing any directions referred to in sub-section (5),- (a) make such further enquiry, as it thinks fit; or (b) cause any further enquiry to be made by any income-tax authority and report the result of the same to it. 8. The DRP may confirm, reduce or enhance the variations proposed in the draft order. 9. If the members of the Dispute Resolution Panel differ in opinion on any point, the point shall be decided according to the opinion of the majority of the members. 10. Every direction issued by the Dispute Resolution Panel shall be binding on the Assessing Officer. 11. If Assessee is not satisfied with Final order passed by AO in pursuance of direction of DRP, he can file an appeal to ITAT [Department cannot challenge direction of DRP]. 12. Central Govt. may make and notify scheme for the purpose of Faceless issuance of directions by the DRP till 31 st March, 2024.
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