Section 144C of Income Tax Act, 1961 - Reference to Dispute Resolution Panel
Section 144C of the Income Tax Act, 1961 provides a special procedure for eligible assessees where the Assessing Officer proposes variations prejudicial to the interest of the assessee. The provision enables the assessee to approach the Dispute Resolution Panel (DRP) against the draft assessment order.
Draft Assessment Order under Section 144C
Where applicable, the Assessing Officer first prepares and forwards a draft assessment order to the eligible assessee before passing the final assessment order.
Response by Eligible Assessee
- The assessee may accept the proposed variations.
- The assessee may file objections before the Dispute Resolution Panel and the Assessing Officer within the prescribed time.
Role of Dispute Resolution Panel
The DRP considers the draft order, objections, evidence, reports and relevant records. It may issue directions to guide the Assessing Officer for completion of assessment.
| Provision | Purpose |
|---|---|
| Section 144C(1) | Forwarding of draft assessment order to eligible assessee. |
| Section 144C(5) | DRP issues directions for completion of assessment. |
| Section 144C(10) | Directions of DRP are binding on Assessing Officer. |
| Section 144C(15) | Defines Dispute Resolution Panel and eligible assessee. |
Meaning of Eligible Assessee
An eligible assessee generally includes cases involving variations arising from Transfer Pricing Officer orders and specified non-resident or foreign company cases as provided under Section 144C.
Faceless Proceedings
The Income Tax Act also provides schemes for technology-based proceedings to improve efficiency, transparency and accountability in dispute resolution procedures.