Law:

Section:

Section 144C of the Income-tax Act, 1961 - Dispute resolution panel - Reference to - Assessment year 2007-08 - Assessee filed writ petition praying for quashment of draft assessment order passed under section 144C(1) on grounds that while passing said order Assessing Officer had not kept in view proviso to sub-section (3)(d) of section 92C; and that when TPO had directed that no transfer pricing adjustment was required to be done, it was incumbent on part of Assessing Officer to follow same in letter and spirit, as that order was binding on him as per provision contained in section 92CA(4) - Whether since dispute resolutions panel, on receipt of assessee's objections, has power to issue such directions as it thinks fit for guidance of Assessing Officer to enable him to complete assessment and, thus, statute has provided a remedy at an intermediate stage, assessee should have taken recourse to same - Held, yes - Whether, accordingly, assessee should be granted liberty to file objections before dispute resolution panel - Held, yes FACTS The assessee filed writ petition praying for quashment of the draft assessment order passed under section 144C(1) on the grounds that the Assessing Officer, while passing draft assessment order, had not kept in view the proviso to sub-section (3)(d) of section 92C, which is mandatory in view of the decision rendered by the Court in Moser Baer India Ltd. v. Addl. CIT [2009] 316 ITR 1 / 176 Taxman 473; and that when the TPO had directed that no transfer pricing adjustment was required to be done, it was incumbent on the part of the Assessing Officer to follow the same in letter and spirit, as that order was binding on him as per the provision contained in section 92CA(4). HELD On a perusal of the provisions under sections 92C, 92CA(4) and 144C, it is found that the dispute resolution panel, on receipt of the objections, has power to issue such directions as it thinks fit for the guidance of the Assessing Officer to enable him to complete the assessment. Sub-sections (6) and (7) of section 144C provide the guidelines and the manner in which the dispute resolution panel shall carry the proceedings under the said provision. [Para 4]…

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