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

Meridian Exports Ltd, a foreign company, receives a draft order of assessment from the Assessing Officer under section 275 of the Income-tax Act, 2025 proposing a variation prejudicial to its interest. By when must it file its acceptance, or its objections with the Dispute Resolution Panel and the Assessing Officer?

The foreign company must file its acceptance, or its objections with both the Dispute Resolution Panel and the Assessing Officer, within thirty days of receiving the draft order. The one-month and nine-month periods in section 275 bind the Assessing Officer and the Panel, not the assessee.

  1. AWithin thirty days of receipt of the draft orderCorrect
  2. BWithin sixty days of receipt of the draft order
  3. CWithin one month from the end of the month of receipt
  4. DWithin nine months from the end of the month of receipt

Explanation

Under section 275(2), the eligible assessee must file acceptance or objections within thirty days of receiving the draft order. The one-month-from-end-of-month period applies to the Assessing Officer's time to pass the order, not the assessee's. The nine-month period is the outer limit for Panel directions.

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