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CS Professional · Advanced Direct Tax Laws and Practice · Appeals

Under section 275 of the Income-tax Act, 2025, which of the following is a power of the Dispute Resolution Panel when dealing with objections to a draft order?

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, its directions bind the Assessing Officer, and a hearing is required before directions are issued.

  1. ATo set aside a proposed variation and direct the Assessing Officer to make fresh enquiry and pass a new order
  2. BTo confirm, reduce or enhance the variations proposed in the draft orderCorrect
  3. CTo issue directions that are advisory and not binding on the Assessing Officer
  4. DTo issue directions without giving the Assessing Officer or the assessee any hearing

Explanation

Section 275(8) empowers the Panel to confirm, reduce or enhance the variations, but it cannot set aside a variation or direct further enquiry and a fresh order. Under section 275(11) its directions bind the Assessing Officer, and under section 275(12) a hearing must be given before directions are issued.

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