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March 2010

Clarification by CBDT that filing of an application to the Dispute Resolution Panel is optional (reproduced hereunder for ease of reference)

By Pinky Shah
Sonalee Godbole
Tarun Ghia
Brijesh Cholera
Pratik Mehta
Gaurang Gandhi
Chartered Accountants
Reading Time 2 mins
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42 Clarification by CBDT that filing of an application to the
Dispute Resolution Panel is optional (reproduced hereunder for ease of
reference)


F. No. 142/22/2009-TPL (Pt. II)

20th January 2010

The Director General of Income-tax (International Taxation),

Room No. 406, Drum Shape Building,

I. P. Estate, Delhi.



Subject:

Clarification regarding
filing of Objections before Dispute Resolution Panel (DRP) – reg


A new section 144C was inserted in the Income-tax Act, 1961
vide Finance (No. 2) Act of 2009. Section 144C provides for constitution of a
Dispute Resolution Panel (DRP) to decide cases of an eligible assessee as
defined in sub-section (15) of section 144C of the Income-tax Act. The Dispute
Resolution Panel Rules were notified vide SO No. 2958 (E) dated 20th November
2009.

2. A query has been raised as to whether it is compulsory for
an assessee to file an objection before the DRP or whether he can choose to file
an appeal through the normal appellate channel of CIT (Appeals).

3. The provisions from sub-section (2) to sub-section (5) of
section 144C are quite clear that a choice has been given to the assessee either
to go before the DRP or to prefer the normal appellate channel. It is again
clarified that it is the choice of the assessee whether to file an objection
before the Dispute Resolution panel against the draft assessment order or not to
exercise this option and file an appeal later before CIT (Appeals) against the
assessment order passed by the Assessing Officer.

4. This position may also be brought to the notice of
taxpayers at large.

C. S. Kahlon,
Member (L&C).


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