Travel Ltd. received the draft order from the Assessing Officer as per section 144C of the Income-tax Act, 1961 due to variations determined by the…
CA Final · Direct Tax Laws and International Taxation · MTP · May 2026
Travel Ltd. received the draft order from the Assessing Officer as per section 144C of the Income-tax Act, 1961 due to variations determined by the Transfer Pricing Officer in the arm's length price. But Travel Ltd. did not prefer to file the objection against the draft order before the Dispute Resolution Penal, instead, he prefer to do appeal before the CIT appeals under section 246A against the final order received from the Assessing Officer. You are required to advise Travel Ltd., whether his contentions are tenable? Discuss the issue with reference to provisions of section 144C of the Income-tax Act, 1961.
Suggested Answer and Working Notes:
Section 144C requires the eligible assessee, Travel Ltd., to file his objections within 30 days of the receipt of draft assessment order from the Assessing Officer with the DRP and the Assessing Officer. If he fails to do so, the Assessing Officer will proceed to complete the assessment on the basis of the draft order. The CBDT has clarified that the assessee has a choice whether to file an objection before the DRP against the draft assessment order or not to exercise this option and file an appeal later before CIT (Appeals) against the final assessment order passed by the Assessing Officer. Therefore, Travel Ltd. can choose to file an appeal before Commissioner (Appeals) against the final assessment order instead of filing objection before the DRP against the draft assessment order passed by the Assessing Officer. In case Travel Ltd. files objection before the DRP, then, he has the right to appeal to Appellate Tribunal, if he is aggrieved by the final order passed by the Assessing Officer in pursuance of the directions of the DRP.
Topics: Dispute Resolution
Related Questions in this Topic
- Mr. Vivek furnished his return of income for A.Y.2025-26 declaring total income of 28,00,000. He received an assessment ...
- Mr. Chauhan furnished his return of income for the FY 2023-24, on 23/07/2024 declaring a total income of 16 lakhs. The A...
- Mr. Baljit, a resident individual, e-filed his return of income for assessment year 2024-25 on 30.07.2024, offered entir...
- The assessee, M/s TQR LLP, a registered LLP, is engaged in the wholesale and retail trade of beverages. The assessee deb...
- Mr. Rajneesh, a resident individual, during the course of assessment proceedings, was found guilty of making false entri...