Remand of a case to Dispute Resolution Panel – No time limit for passing order by DRP?

Ashish Karundia & Sukh Sagar – [2021] 132 taxmann.com 217 (Article)

Section 144C of the Income-tax Act, 1961 (‘the Act’) provides for a special and speedier assessment process for a certain class of assessees. The section provides that in the first instance the Assessing Officer (‘AO’) shall issue a draft of the proposed order of assessment which can be challenged inter alia before the Dispute Resolution Panel (‘DRP’).

The AO later finalises the assessment by passing a final order based on directions of DRP. There have been several instances in the past wherein the final order is challenged before the Income-tax Appellate Tribunal (‘Tribunal’) alleging that the DRP’s failed to give proper directions to the AO by passing a speaking order. In such cases, the Tribunal remands back the case to the DRP for passing a speaking order.

This article deliberates on whether any time limit is prescribed in the Act for DRP to pass an order in such cases of remand and in case there is no statutory time limit, what can be the maximum time limit for passing of the order by DRP.

Click Here To Read The Full Article