INCOME TAX ACT, 1961

Section 144C(8) Section 144C(11) Section 251(2)

Assessment - Order passed by DRP - Whether DRP exceeded direction issued by Tribunal -

The Tribunal was concerned with non-adjudication of the application for permission to lead additional evidences and objections disposed of by the DRP were not by a speaking order and, accordingly, Tribunal set aside all these issues and remitted matter back to the DRP for readjudication. In the readjudication proceedings, the DRP disposed of the objections by a well- reasoned order following the directions of the Tribunal which directed the DRP to dispose of the objections by a speaking order. The assessee stated that the DRP had enhanced assessment, which it could not do in the second round of litigation.Held: The DRP had simply followed the directions of the Tribunal in readjudication proceedings to assist the AO in determining the issues raised before the Tribunal in the first round of litigation. In doing so, the DRP had not done any enhancement. Further, provisions of section 251(2) are different from the provisions of section 144C(8) and (11). The CIT(A) is an appellate authority, whereas the DRP is a continuation of the assessment proceedings where the DRP acts as a corrective mechanism to guide the AO for making error free assessments. Role of a DRP is to assist the AO in determining the correct income so that correct tax may be levied.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2002-03 to 2007-08

INCOME TAX ACT, 1961

Section 251(1)

SUBSCRIBE FOR FULL CONTENT