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

Meridian Components Ltd, an Indian company, receives from the Assessing Officer a draft order proposing a variation prejudicial to it. The variation arises from an order of the Transfer Pricing Officer. The company wishes to object before the Dispute Resolution Panel (DRP). Within what time from receipt of the draft order must it file its objections with the DRP and the Assessing Officer?

The objections must be filed within thirty days of receiving the draft order, both with the Dispute Resolution Panel and with the Assessing Officer. The nine-month period is the limit for the DRP to issue its directions, so it is not the assessee's filing period.

  1. AFifteen days
  2. BThirty daysCorrect
  3. CSixty days
  4. DNine months

Explanation

Under section 275(2), an eligible assessee must either accept the variations or file objections with the DRP and the Assessing Officer within thirty days of receiving the draft order. Nine months is the outer limit for the DRP to issue directions, not the time for filing objections.

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