CA Final · Direct Tax Laws & International Taxation · Dispute Resolution
The Dispute Resolution Panel receives objections from Nimbus Ltd., an eligible assessee, against a draft order proposing an addition of ₹40 lakh. The draft order was forwarded on 12 June 2026. Under section 275, by which date can the Panel issue its directions at the latest?
The Panel can issue directions up to 31 March 2027. Section 275(13) allows nine months from the end of the month in which the draft order is forwarded; the draft order was forwarded in June 2026, so the month-end is 30 June 2026.
- A31 March 2027Correct
- B12 March 2027
- C30 June 2027
- D31 December 2026
Explanation
Section 275(13) bars directions after nine months from the end of the month in which the draft order is forwarded. The month-end is 30 June 2026, and nine months from it is 31 March 2027. 12 March 2027 wrongly counts from the date of forwarding. 30 June 2027 adds twelve months, not nine.
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