Income Tax - Dispute Resolution Panel (DRP) is optional - CBDT
THE Finance Act 2009 has introduced the new concept of Dispute Resolution Panel (DRP). A doubt has been raised as to whether it is compulsory for an assessee to file an objection before the DRP or whether he can choose to file an appeal through the normal appellate channel of CIT (Appeals).
The CBDT Member (L&C), in a letter to the Director General of Income-tax (International Taxation), has clarified that the provisions of sub-section (2) to sub-section (5) of section 144C are quite clear that a choice has been given to the assessee either to go before the DRP or to prefer the normal appellate channel. It is again clarified that it is the choice of the assessee whether to file an objection before the Dispute Resolution panel against the draft assessment order or not to exercise this option and file an appeal later before CIT (Appeals) against the assessment order passed by the Assessing Officer .
The Member wants the position to be brought to the notice of taxpayers at large.
Why couldn't the Board issue a public circular? Maybe they are emulating their cousins in the CBEC!
Also see our article Dispute Resolution Panel for non-resident companies - CBDT needs to be more efficient!
CBDT Member's Letter in F. No. 142/22/2009-TPL (Pt. II) Dated: January 20, 2010