Section 144C ITA 1961 establishes the DISPUTE RESOLUTION PANEL (DRP) for:
Answer & Solution
Correct answer: A.
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_
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