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CMA Final · Direct Tax Laws and International Taxation · Assessment Procedure including Dispute Resolution Process

A Dispute Resolution Panel is examining the objections of a foreign company against a draft assessment order. Which of the following is the power the Panel has under the Income-tax Act, 2025?

The Dispute Resolution Panel may confirm, reduce or enhance the variations proposed in the draft order. It cannot set aside a variation or direct further enquiry for a fresh order, and its enhancement power extends to matters the assessee did not raise.

  1. AIt may confirm, reduce or enhance the variations proposed in the draft orderCorrect
  2. BIt may set aside a proposed variation and direct the Assessing Officer to make a fresh enquiry
  3. CIt may issue directions for further enquiry and passing of a fresh assessment order
  4. DIt may enhance variations only on matters that the assessee raised in the objections

Explanation

Section 275(8) lets the Panel confirm, reduce or enhance variations, but it cannot set aside a variation or direct further enquiry and a fresh order. Under section 275(9), enhancement can cover matters arising from the assessment proceedings even if the assessee did not raise them, so the last option is wrong.

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