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CMA Final · Direct Tax Laws and International Taxation · Assessment Procedure including Dispute Resolution Process

Which of the following persons is an "eligible assessee" for the purposes of the Dispute Resolution Panel procedure under section 275 of the Income-tax Act, 2025, subject to the exclusions in sub-section (18)?

A foreign company facing a prejudicial proposed variation is an eligible assessee. The definition covers persons with variations arising from a Transfer Pricing Officer's order, and any non-resident non-company or foreign company, whereas resident persons without a transfer pricing variation are not covered.

  1. AA resident domestic company with no transfer pricing variation
  2. BA resident individual whose assessment is proposed to be enhanced by ₹5 lakh
  3. CA foreign company in whose case the Assessing Officer proposes a prejudicial variationCorrect
  4. DA resident firm that has accepted the draft order

Explanation

Section 275(17)(b) defines eligible assessee as a person whose variation arises from a Transfer Pricing Officer's order, or any non-resident (not being a company) or any foreign company. A foreign company therefore qualifies. Resident persons without a transfer pricing variation do not.

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