Constitution of DRPs in eight cities notified

November 24, 2009 10:43 pm | Updated 10:43 pm IST - NEW DELHI:

The Central Board of Direct Taxes (CBDT) on Tuesday notified rules to regulate the procedure of the dispute resolution panels (DRPs) being constituted in eight cities — Delhi, Mumbai, Ahmedabad, Kolkata, Chennai, Hyderabad, Bengaluru and Pune. Set up under Sec. 144C of the Income-tax Act, 1961, (as inserted by the Finance Act, 2009), the rules came into effect from November 20. As per the rules, according to an official statement here, any foreign company, or any domestic company with transfer pricing issues, in whose case the income-tax assessing officer proposes to make any variation in the income or loss returned, may apply within a month of receiving the draft assessment order before the DRP for appropriate remedy by way of direction to the assessing officer.

The direction will be binding on the assessing officer but the taxpayer will be at liberty to appeal against the assessment order incorporating directions of DRP before the Income Tax Appellate Tribunal (ITAT).

Each of the DRPs will be a collegium comprising three Commissioners of Income- tax.

“The mechanism is investor-friendly and is also expected to reduce taxpayer grievance and litigation,” the statement said.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.