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

Which of the following powers is expressly available to the Dispute Resolution Panel when dealing with objections to variations proposed in a draft order under the Income-tax Act, 2025?

The Panel may confirm, reduce or enhance the variations proposed in the draft order. It cannot set aside a variation or direct further enquiry for passing the order, and it must hear the assessee before issuing directions.

  1. ATo set aside a proposed variation and direct a fresh assessment
  2. BTo confirm, reduce or enhance the proposed variationsCorrect
  3. CTo direct the Assessing Officer to make further enquiry and then pass the assessment order
  4. DTo issue directions without hearing the assessee if the majority of members agree

Explanation

Section 275(8) empowers the Panel to confirm, reduce or enhance variations, but it cannot set aside any variation or issue a direction for further enquiry and passing of the order. Section 275(12) requires an opportunity of being heard, so the last option is wrong.

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