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

Zephyr Holdings Inc., a foreign company, receives a draft order of assessment from the Assessing Officer proposing variations prejudicial to its interest. It wishes to object. Under section 275 of the Income-tax Act, 2025, within what time must it file its objections, and with whom?

The eligible assessee must file objections within thirty days of receiving the draft order, and the objections go to both the Dispute Resolution Panel and the Assessing Officer. Filing with only one of them, or taking sixty days, does not satisfy section 275(2).

  1. AWithin 30 days of receipt of the draft order, with the Dispute Resolution Panel and the Assessing OfficerCorrect
  2. BWithin 30 days of receipt of the draft order, with the Dispute Resolution Panel only
  3. CWithin 60 days of receipt of the draft order, with the Dispute Resolution Panel and the Assessing Officer
  4. DWithin 30 days of receipt of the draft order, with the Assessing Officer only

Explanation

Section 275(2) requires the eligible assessee, within thirty days of receipt of the draft order, either to accept the variations or to file objections with both the Dispute Resolution Panel and the Assessing Officer. Filing with the Panel alone is incomplete, and 60 days is not the period given.

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