Skip to content

CA Final · Direct Tax Laws & International Taxation · Dispute Resolution

Mehta Exports Pvt Ltd, a domestic company, receives a draft assessment order forwarded under section 275 following a Transfer Pricing Officer's order passed under section 166(6), which results in variations prejudicial to it. The Dispute Resolution Panel is considering its objections. Which statement is correct as per the Income-tax Act, 2025?

The domestic company is an eligible assessee because the variation arises from the Transfer Pricing Officer's order under section 166(6). Section 275(17)(b)(i) covers any such person, and the monetary limits of the Dispute Resolution Committee provisions do not apply to the Panel.

  1. AThe company is not an eligible assessee because it is a domestic company, so it cannot go to the Panel
  2. BThe company is an eligible assessee because the variation arises from the Transfer Pricing Officer's orderCorrect
  3. CThe company can go to the Panel only if the variations are below ten lakh rupees
  4. DThe company can go to the Panel only if its total income is below fifty lakh rupees

Explanation

Under section 275(17)(b)(i), any person whose variation arises as a consequence of the Transfer Pricing Officer's order under section 166(6) is an eligible assessee, so a domestic company qualifies. The ten lakh and fifty lakh limits belong to the Dispute Resolution Committee's specified order under section 379, not the Panel.

Did you get it right without looking?

One question tells you little. A timed set on Dispute Resolution shows your real accuracy, how long you take and where you lose marks.

Practise Dispute ResolutionFree diagnostic mock

More Dispute Resolution questions