TAX PICKINGS [POWER OF DISPUTE RESOLUTION PANEL UNDER SECTION 144C(8)]

 Recently a controversy arose as to the power of the Dispute resolution Panel under Section 144C(8) of the Income Tax Act, 1961. It was contended by the Assessee that the power under the section can be exercised by the DRP only with respect to an issue which has been discussed in the draft assessment order.

However, relying on the Explanation to the Section, the Hon'ble High Court of Madras has held that-"there is no impediment as such for the Dispute Resolution panel to consider any matter arising out of the assessment proceedings relating to the draft assessment order and no matter such an issue was discussed in the draft assessment order or not but it should not be totally unconnected with the assessment proceedings or the draft assessment order."

-Delphi-TVS Diesel Systems Ltd. vs. ITO (OSD), [2022] 440 ITR 310, at Page 323, Para 28

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