Section 144C ITA 1961 establishes the DISPUTE RESOLUTION PANEL (DRP) for:
AEligibleFOREIGN COMPANY AND ASSESSEE referred to Transfer Pricing Officer; OPTIONAL fast-track dispute resolution before assessment becomes final; DRP gives directions binding on AO
Ball assessees (cf. Income Tax Act 1961, Section 144C) (cf. Income Tax Act 1961, Section 144C) (cf. Income Tax Act 1961, Section 144C) (cf. Income Tax Act 1961, Section 144C)
Csmall businesses (cf. Income Tax Act 1961, Section 144C) (cf. Income Tax Act 1961, Section 144C) (cf. Income Tax Act 1961, Section 144C) (cf. Income Tax Act 1961, Section 144C)
Dno one (cf. Income Tax Act 1961, Section 144C) (cf. Income Tax Act 1961, Section 144C) (cf. Income Tax Act 1961, Section 144C) (cf. Income Tax Act 1961, Section 144C)
Answer & Solution
Correct answer: A. EligibleFOREIGN COMPANY AND ASSESSEE referred to Transfer Pricing Officer; OPTIONAL fast-track dispute resolution before assessment becomes final; DRP gives directions binding on AO
1. Section 144C Income Tax Act 1961 (inserted by Finance Act 2009): provides for DISPUTE RESOLUTION PANEL (DRP) — fast-track resolution mechanism.
2. ELIGIBILITY:
3. (i) FOREIGN COMPANY; OR
4. (ii) ASSESSEE in whose case the Transfer Pricing Officer (TPO) under Section 92CA has made any variation in the income.
5. PROCESS:
6. (i) AO sends DRAFT ASSESSMENT ORDER to assessee;
7. (ii) Assessee may file OBJECTIONS to DRP within 30 days;
8. (iii) DRP — 3-member panel of senior IRS officers — gives DIRECTIONS within 9 MONTHS;
9. (iv) Directions BIND THE AO;
10. (v) AO completes assessment as per DRP directions.
11. Appeal from DRP-directed assessment lies directly to ITAT under Section 253.
12. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Section 144C_
Related questions
Section 80GG ITA 1961 provides DEDUCTION for HOUSE RENT PAID by salary earners NOT receiviDOUBLE TAXATION AVOIDANCE AGREEMENT (DTAA) under Section 90 ITA 1961:Section 9 ITA 1961 prescribes when INCOME is DEEMED to ACCRUE OR ARISE in India for non-reSection 79 ITA 1961 restricts CARRY FORWARD of LOSSES of a COMPANY in case of CHANGE in BESections 73-75 CGST Act 2017 prescribe procedures for tax DEMANDS where TAX has been NOT PSection 5 IGST Act 2017 levies IGST on:Under Section 269ST ITA 1961, CASH RECEIPTS of Rs 2 LAKH or MORE from a single person in rThe DIRECT TAX VIVAD SE VISHWAS ACT 2020 was enacted to: