What is Reference to dispute resolution panel? Section 144C of
Income Tax Act 1961
Reference to dispute resolution panel is
defined under section 144C of Income Tax Act 1961.
Provisions under this Section are :
Section 144C of Income Tax Act "Reference to
dispute resolution panel"
Section 144C. (1) The Assessing Officer shall, notwithstanding
anything to the contrary contained in this Act, in the first
instance, forward a draft of the proposed order of
assessment (hereafter in this section referred to as the
draft order) to the eligible assessee if he proposes to
make, on or after the 1st day of October, 2009, any
variation in the income or loss returned which is
prejudicial to the interest of such assessee.
(2) On receipt of the draft order, the eligible assessee
shall, within thirty days of the receipt by him of the draft
(a) file his acceptance of the variations to the Assessing
(b) file his objections, if any, to such variation with,-
(i) the Dispute Resolution Panel; and
(ii) the Assessing Officer.
(3) The Assessing Officer shall complete the assessment
on the basis of the draft order, if-
(a) the assessee intimates to the Assessing Officer the
acceptance of the variation; or
(b) no objections are received within the period specified
in sub-section (2).
(4) The Assessing Officer shall, notwithstanding anything
contained in section 153 or section 153B, pass the
assessment order under sub-section (3) within one month from
the end of the month in which,-
(a) the acceptance is received; or
(b) the period of filing of objections under sub-section (2)
(5) The Dispute Resolution Panel shall, in a case where
any objection is received under sub-section (2), issue such
directions, 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
(a) draft order;
(b) objections filed by the assessee;
(c) evidence furnished by the assessee;
(d) report, if any, of the Assessing Officer, Valuation
Officer or Transfer Pricing Officer or any other authority;
(e) records relating to the draft order;
(f) evidence collected by, or caused to be collected by, it;
(g) result of any enquiry made by, or caused to be made by,
(7) The Dispute Resolution Panel 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 Dispute Resolution Panel may confirm, reduce or
enhance the variations proposed in the draft order so,
however, that it shall not set aside any proposed variation
or issue any direction under sub-section (5) for further
enquiry and passing of the assessment order.
Explanation.-For the removal of doubts, it is hereby
declared that the power of the Dispute Resolution Panel to
enhance the variation shall include and shall be deemed
always to have included the power to consider any matter
arising out of the assessment proceedings relating to the
draft order, notwithstanding that such matter was raised or
not by the eligible assessee.
(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) No direction under sub-section (5) shall be issued
unless an opportunity of being heard is given to the
assessee and the Assessing Officer on such directions which
are prejudicial to the interest of the assessee or the
interest of the revenue, respectively.
(12) No direction under sub-section (5) shall be issued
after nine months from the end of the month in which the
draft order is forwarded to the eligible assessee.
(13) Upon receipt of the directions issued under sub-section
(5), the Assessing Officer shall, in conformity with the
directions, complete, notwithstanding anything to the
contrary contained in section 153 or section 153B, the
assessment without providing any further opportunity of
being heard to the assessee, within one month from the end
of the month in which such direction is received.
(14) The Board may make rules for the purposes of the
efficient functioning of the Dispute Resolution Panel and
expeditious disposal of the objections filed under
sub-section (2) by the eligible assessee.
Following sub-section (14A) shall be inserted after
sub-section (14) of section 144C by the Finance Act, 2013,
w.e.f. 1-4-2016 :
(14A) The provisions of this section shall not apply to any
assessment or reassessment order passed by the Assessing
Officer with the prior approval of the 91[Principal
Commissioner or] Commissioner as provided in sub-section
(12) of section 144BA.
(15) For the purposes of this section,-
(a) "Dispute Resolution Panel" means a collegium comprising
of three 92[Principal Commissioners or] Commissioners of
Income-tax constituted by the Board for this purpose;
(b) "eligible assessee" means,-
(i) any person in whose case the variation referred to in
sub-section (1) arises as a consequence of the order of the
Transfer Pricing Officer passed under sub-section (3) of
section 92CA; and
(ii) any foreign company.