We are considering objecting to a draft order. Can the Dispute Resolution Panel make our position worse, can it send the matter back for fresh enquiry, and if we lose before it, do we appeal to the Commissioner (Appeals) or straight to the Tribunal?
It can make your position worse; it cannot send the matter back; and the appeal lies to the Tribunal, not to the Commissioner (Appeals). Section 144C(8), as printed on the departmental edition stamped Year 2025, reads: "The Dispute Resolution Panel may confirm, reduce or enhance the variations proposed in the draft order so, however, that it shall not set aside any proposed variation or issue any direction under sub-section (5) for further enquiry and passing of the assessment order." The Explanation to that sub-section reads: "For the removal of doubts, it is hereby declared that the power of the Dispute Resolution Panel to enhance the variation shall include and shall be deemed always to have included the power to consider any matter arising out of the assessment proceedings relating to the draft order, notwithstanding that such matter was raised or not by the eligible assessee." Footnote 76 on the departmental edition stamped Year 2014 records that Explanation verbatim as "Inserted by the Finance Act, 2012, w.r.e.f. 1-4-2009" — note the date: it is retrospective to 1 April 2009, the date the section itself was inserted from, and not 2012. The original edition stamped Year 2009 prints sub-section (8) with no Explanation at all. Sub-section (10): "Every direction issued by the Dispute Resolution Panel shall be binding on the Assessing Officer." Sub-section (11): "No direction under sub-section (5) shall be issued unless an opportunity of being heard is given to the assessee and the Assessing Officer on such directions which are prejudicial to the interest of the assessee or the interest of the revenue, respectively." Sub-section (9) resolves a difference of opinion among the members by the opinion of the majority. On appeal: s.246A(1)(a), on the departmental edition stamped Year 2025, excepts from the first appeal "an order passed in pursuance of directions of the Dispute Resolution Panel", and s.253(1)(d), on the edition stamped Year 2024 (No. 2), gives a direct right of appeal to the Appellate Tribunal against "an order passed by an Assessing Officer under sub-section (3), of section 143 or section 147 or section 153A or section 153C in pursuance of the directions of the Dispute Resolution Panel or an order passed under section 154 in respect of such order". Sub-sections (2A) and (3A) of s.253 are printed as "[***]" on the current editions, and the departmental edition stamped Year 2016 carries footnotes against both reading "Omtt. by Act No. 28 of 2016 (w.e.f. 1-6-2016)."
Decided by the CBDT Circulars & Instructions (Not applicable — statutory text) on 2009-04-01, reported as Section 144C(8) with its Explanation and sub-sections (9), (10) and (11) of the Income-tax Act, 1961, heading "Reference to dispute resolution panel", transcribed from incometaxindia.gov.in/w/section-144c-16 (Year: 2025); the Explanation and its footnote 76, "Inserted by the Finance Act, 2012, w.r.e.f. 1-4-2009.", read on incometaxindia.gov.in/w/section-144c-5 (Year: 2014); sub-section (8) without any Explanation read on incometaxindia.gov.in/w/section-144c (Year: 2009); section 253(1)(d) and sub-sections (2A) and (3A) read on incometaxindia.gov.in/w/section-253-63 (Year: 2024 (No. 2)), incometaxindia.gov.in/w/section-253-58 (Year: 2019 (No. 2)), incometaxindia.gov.in/w/section-253-55 (Year: 2016, footnotes 1 and 3) and incometaxindia.gov.in/w/section-253-1 (Year: 2009, footnote 29a); section 246A(1)(a) read on incometaxindia.gov.in/w/section-246a-37 (Year: 2025) and incometaxindia.gov.in/w/section-246a-27 (Year: 2015). It bears on section 144C, section 144C(5), section 144C(13), section 144C(1), section 144C(2), section 144C(15), section 253, section 253(1), section 246A, section 246A(1)(a), section 143(3), section 147, section 153A, section 153C, section 144BA, section 144BA(12), section 92CA, section 92CA(3) of the Income Tax Act 1961, in Assessment & Scrutiny, Appeals, How Tax Law Is Read and Evidence & Burden of Proof matters.
The decision whether to object is a real decision, and the section makes it so. The Panel is not an appellate authority that can only affirm or reduce: s.144C(8) puts enhancement on the same footing as confirmation and reduction, and the Explanation removes any argument that enhancement is confined to the matters the assessee chose to object to. On the words of the Explanation the Panel may consider ANY matter arising out of the assessment proceedings relating to the draft order, whether the eligible assessee raised it or not, and that power is deemed always to have existed from 1 April 2009. An assessee who objects to one adjustment therefore exposes the whole draft order. Against that, the same sub-section is a protection: the Panel cannot set aside a proposed variation and cannot direct further enquiry and a fresh assessment order, so the assessee cannot be sent back to the beginning of the assessment and the file cannot be kept open by remission. What is left to the Panel is to decide, on the material listed in s.144C(6) and any enquiry it makes under s.144C(7), and its direction binds the Assessing Officer under s.144C(10), which is why a final order that departs from the direction is open to challenge on the face of the section. Section 144C(11) is the procedural safeguard and it is two-sided: the opportunity of being heard is owed to the assessee on directions prejudicial to him and to the Assessing Officer on directions prejudicial to the revenue, so a direction enhancing a variation without hearing the assessee is issued contrary to the sub-section. On the appeal route, the combination of the exception in s.246A(1)(a) and the direct right in s.253(1)(d) means the first appeal is not merely unattractive but unavailable: the matter goes to the Tribunal.
Binding on the department, not on the assessee or the courts. An assessee may rely on a circular that is beneficial to them.
Read aloud by your device. Press again to stop.
As printed on the departmental page stamped Year 2025, section 144C(8) reads: "The Dispute Resolution Panel may confirm, reduce or enhance the variations proposed in the draft order so, however, that it shall not set aside any proposed variation or issue any direction under sub-section (5) for further enquiry and passing of the assessment order." and the Explanation to it reads: "Explanation.—For the removal of doubts, it is hereby declared that the power of the Dispute Resolution Panel to enhance the variation shall include and shall be deemed always to have included the power to consider any matter arising out of the assessment proceedings relating to the draft order, notwithstanding that such matter was raised or not by the eligible assessee." Sub-section (9): "If the members of the Dispute Resolution Panel differ in opinion on any point, the point shall be decided according to the opinion of the majority of the members." Sub-section (10): "Every direction issued by the Dispute Resolution Panel shall be binding on the Assessing Officer." Sub-section (11): "No direction under sub-section (5) shall be issued unless an opportunity of being heard is given to the assessee and the Assessing Officer on such directions which are prejudicial to the interest of the assessee or the interest of the revenue, respectively." On the edition stamped Year 2014 the Explanation is printed in square brackets against footnote marker [76] and footnote 76 reads: "Inserted by the Finance Act, 2012, w.r.e.f. 1-4-2009." On the original edition stamped Year 2009 sub-section (8) is printed in the same words with no Explanation following it. On section 253, the edition stamped Year 2024 (No. 2) prints clause (1)(d) as: "an order passed by an Assessing Officer under sub-section (3), of section 143 or section 147 or section 153A or section 153C in pursuance of the directions of the Dispute Resolution Panel or an order passed under section 154 in respect of such order", and prints sub-sections (2A) and (3A) as "[***]"; the edition stamped Year 2019 (No. 2) prints (2A) and (3A) as "[***]" likewise; the edition stamped Year 2016 prints them as omitted with footnote 1 against (2A) and footnote 3 against (3A), each reading "Omtt. by Act No. 28 of 2016 (w.e.f. 1-6-2016)."; and the edition stamped Year 2009 prints clause (1)(d) with footnote 29a, "Inserted by the Finance (No. 2) Act, 2009, w.e.f. 1-10-2009." On section 246A, the edition stamped Year 2025 prints clause (1)(a) as covering "any order of assessment under sub-section (3) of section 143 except an order passed in pursuance of directions of the Dispute Resolution Panel or an order referred to in sub-section (12) of section 144BA or section 144", and the edition stamped Year 2015 prints the same exception in clause (1)(a) and again in clause (1)(b) in relation to an order under section 147.
Not a judgment. The statutory position is that the Dispute Resolution Panel may confirm, reduce or enhance the variations proposed in the draft order, but shall not set aside any proposed variation and shall not issue any direction under s.144C(5) for further enquiry and passing of the assessment order; that by the Explanation to s.144C(8), inserted by the Finance Act 2012 with retrospective effect from 1 April 2009, the power to enhance the variation includes and shall be deemed always to have included the power to consider any matter arising out of the assessment proceedings relating to the draft order whether or not that matter was raised by the eligible assessee; that a difference of opinion among the members is decided by the majority; that every direction issued by the Panel is binding on the Assessing Officer; and that no direction under s.144C(5) may be issued unless an opportunity of being heard is given to the assessee, on directions prejudicial to his interest, and to the Assessing Officer, on directions prejudicial to the interest of the revenue. On appeal, s.246A(1)(a) excepts an order passed in pursuance of directions of the Panel from appeal to the Commissioner (Appeals), and s.253(1)(d) gives the assessee a direct appeal to the Appellate Tribunal against an order of an Assessing Officer under s.143(3), s.147, s.153A or s.153C passed in pursuance of directions of the Panel, or an order under s.154 in respect of such an order. Sub-sections (2A) and (3A) of s.253 were omitted by Act No. 28 of 2016 with effect from 1 June 2016 and are printed as "[***]" on the current departmental editions; what those sub-sections provided is not stated here because no departmental page reached prints their pre-omission text.
Not a judgment; no judicial reasoning is stated for the section.
Explanation.—For the removal of doubts, it is hereby declared that the power of the Dispute Resolution Panel to enhance the variation shall include and shall be deemed always to have included the power to consider any matter arising out of the assessment proceedings relating to the draft order, notwithstanding that such matter was raised or not by the eligible assessee.
Upload it and we will read it, work out your deadline and draft the reply. A CA reviews before anything is filed.
Handle my notice → Ask a CA on WhatsAppIt can make your position worse; it cannot send the matter back; and the appeal lies to the Tribunal, not to the Commissioner (Appeals). Section 144C(8), as printed on the departmental edition stamped Year 2025, reads: "The Dispute Resolution Panel may confirm, reduce or enhance the variations proposed in the draft order so, however, that it shall not set aside any proposed variation or issue any direction under sub-section (5) for further enquiry and passing of the assessment order." The Explanation to that sub-section reads: "For the removal of doubts, it is hereby declared that the power of the Dispute Resolution Panel to enhance the variation shall include and shall be deemed always to have included the power to consider any matter arising out of the assessment proceedings relating to the draft order, notwithstanding that such matter was raised or not by the eligible assessee." Footnote 76 on the departmental edition stamped Year 2014 records that Explanation verbatim as "Inserted by the Finance Act, 2012, w.r.e.f. 1-4-2009" — note the date: it is retrospective to 1 April 2009, the date the section itself was inserted from, and not 2012. The original edition stamped Year 2009 prints sub-section (8) with no Explanation at all. Sub-section (10): "Every direction issued by the Dispute Resolution Panel shall be binding on the Assessing Officer." Sub-section (11): "No direction under sub-section (5) shall be issued unless an opportunity of being heard is given to the assessee and the Assessing Officer on such directions which are prejudicial to the interest of the assessee or the interest of the revenue, respectively." Sub-section (9) resolves a difference of opinion among the members by the opinion of the majority. On appeal: s.246A(1)(a), on the departmental edition stamped Year 2025, excepts from the first appeal "an order passed in pursuance of directions of the Dispute Resolution Panel", and s.253(1)(d), on the edition stamped Year 2024 (No. 2), gives a direct right of appeal to the Appellate Tribunal against "an order passed by an Assessing Officer under sub-section (3), of section 143 or section 147 or section 153A or section 153C in pursuance of the directions of the Dispute Resolution Panel or an order passed under section 154 in respect of such order". Sub-sections (2A) and (3A) of s.253 are printed as "[***]" on the current editions, and the departmental edition stamped Year 2016 carries footnotes against both reading "Omtt. by Act No. 28 of 2016 (w.e.f. 1-6-2016)." This was decided by the CBDT Circulars & Instructions (Not applicable — statutory text) and bears on section 144C, section 144C(5), section 144C(13), section 144C(1), section 144C(2), section 144C(15), section 253, section 253(1), section 246A, section 246A(1)(a), section 143(3), section 147, section 153A, section 153C, section 144BA, section 144BA(12), section 92CA, section 92CA(3) of the Income Tax Act 1961. It is reported as Section 144C(8) with its Explanation and sub-sections (9), (10) and (11) of the Income-tax Act, 1961, heading "Reference to dispute resolution panel", transcribed from incometaxindia.gov.in/w/section-144c-16 (Year: 2025); the Explanation and its footnote 76, "Inserted by the Finance Act, 2012, w.r.e.f. 1-4-2009.", read on incometaxindia.gov.in/w/section-144c-5 (Year: 2014); sub-section (8) without any Explanation read on incometaxindia.gov.in/w/section-144c (Year: 2009); section 253(1)(d) and sub-sections (2A) and (3A) read on incometaxindia.gov.in/w/section-253-63 (Year: 2024 (No. 2)), incometaxindia.gov.in/w/section-253-58 (Year: 2019 (No. 2)), incometaxindia.gov.in/w/section-253-55 (Year: 2016, footnotes 1 and 3) and incometaxindia.gov.in/w/section-253-1 (Year: 2009, footnote 29a); section 246A(1)(a) read on incometaxindia.gov.in/w/section-246a-37 (Year: 2025) and incometaxindia.gov.in/w/section-246a-27 (Year: 2015). The decision whether to object is a real decision, and the section makes it so. The Panel is not an appellate authority that can only affirm or reduce: s.144C(8) puts enhancement on the same footing as confirmation and reduction, and the Explanation removes any argument that enhancement is confined to the matters the assessee chose to object to. On the words of the Explanation the Panel may consider ANY matter arising out of the assessment proceedings relating to the draft order, whether the eligible assessee raised it or not, and that power is deemed always to have existed from 1 April 2009. An assessee who objects to one adjustment therefore exposes the whole draft order. Against that, the same sub-section is a protection: the Panel cannot set aside a proposed variation and cannot direct further enquiry and a fresh assessment order, so the assessee cannot be sent back to the beginning of the assessment and the file cannot be kept open by remission. What is left to the Panel is to decide, on the material listed in s.144C(6) and any enquiry it makes under s.144C(7), and its direction binds the Assessing Officer under s.144C(10), which is why a final order that departs from the direction is open to challenge on the face of the section. Section 144C(11) is the procedural safeguard and it is two-sided: the opportunity of being heard is owed to the assessee on directions prejudicial to him and to the Assessing Officer on directions prejudicial to the revenue, so a direction enhancing a variation without hearing the assessee is issued contrary to the sub-section. On the appeal route, the combination of the exception in s.246A(1)(a) and the direct right in s.253(1)(d) means the first appeal is not merely unattractive but unavailable: the matter goes to the Tribunal. If it applies to you, the first step is this: Advise the client before objecting that the Panel may ENHANCE, and that by the Explanation to s.144C(8) it may take up any matter arising out of the assessment proceedings relating to the draft order whether or not you raised it. The exposure is the whole draft order, not the objected adjustment.
As printed on the departmental page stamped Year 2025, section 144C(8) reads: "The Dispute Resolution Panel may confirm, reduce or enhance the variations proposed in the draft order so, however, that it shall not set aside any proposed variation or issue any direction under sub-section (5) for further enquiry and passing of the assessment order." and the Explanation to it reads: "Explanation.—For the removal of doubts, it is hereby declared that the power of the Dispute Resolution Panel to enhance the variation shall include and shall be deemed always to have included the power to consider any matter arising out of the assessment proceedings relating to the draft order, notwithstanding that such matter was raised or not by the eligible assessee." Sub-section (9): "If the members of the Dispute Resolution Panel differ in opinion on any point, the point shall be decided according to the opinion of the majority of the members." Sub-section (10): "Every direction issued by the Dispute Resolution Panel shall be binding on the Assessing Officer." Sub-section (11): "No direction under sub-section (5) shall be issued unless an opportunity of being heard is given to the assessee and the Assessing Officer on such directions which are prejudicial to the interest of the assessee or the interest of the revenue, respectively." On the edition stamped Year 2014 the Explanation is printed in square brackets against footnote marker [76] and footnote 76 reads: "Inserted by the Finance Act, 2012, w.r.e.f. 1-4-2009." On the original edition stamped Year 2009 sub-section (8) is printed in the same words with no Explanation following it. On section 253, the edition stamped Year 2024 (No. 2) prints clause (1)(d) as: "an order passed by an Assessing Officer under sub-section (3), of section 143 or section 147 or section 153A or section 153C in pursuance of the directions of the Dispute Resolution Panel or an order passed under section 154 in respect of such order", and prints sub-sections (2A) and (3A) as "[***]"; the edition stamped Year 2019 (No. 2) prints (2A) and (3A) as "[***]" likewise; the edition stamped Year 2016 prints them as omitted with footnote 1 against (2A) and footnote 3 against (3A), each reading "Omtt. by Act No. 28 of 2016 (w.e.f. 1-6-2016)."; and the edition stamped Year 2009 prints clause (1)(d) with footnote 29a, "Inserted by the Finance (No. 2) Act, 2009, w.e.f. 1-10-2009." On section 246A, the edition stamped Year 2025 prints clause (1)(a) as covering "any order of assessment under sub-section (3) of section 143 except an order passed in pursuance of directions of the Dispute Resolution Panel or an order referred to in sub-section (12) of section 144BA or section 144", and the edition stamped Year 2015 prints the same exception in clause (1)(a) and again in clause (1)(b) in relation to an order under section 147. The matter was decided on 2009-04-01 by the CBDT Circulars & Instructions (Not applicable — statutory text). On those facts the CBDT Circulars & Instructions held as follows. Not a judgment. The statutory position is that the Dispute Resolution Panel may confirm, reduce or enhance the variations proposed in the draft order, but shall not set aside any proposed variation and shall not issue any direction under s.144C(5) for further enquiry and passing of the assessment order; that by the Explanation to s.144C(8), inserted by the Finance Act 2012 with retrospective effect from 1 April 2009, the power to enhance the variation includes and shall be deemed always to have included the power to consider any matter arising out of the assessment proceedings relating to the draft order whether or not that matter was raised by the eligible assessee; that a difference of opinion among the members is decided by the majority; that every direction issued by the Panel is binding on the Assessing Officer; and that no direction under s.144C(5) may be issued unless an opportunity of being heard is given to the assessee, on directions prejudicial to his interest, and to the Assessing Officer, on directions prejudicial to the interest of the revenue. On appeal, s.246A(1)(a) excepts an order passed in pursuance of directions of the Panel from appeal to the Commissioner (Appeals), and s.253(1)(d) gives the assessee a direct appeal to the Appellate Tribunal against an order of an Assessing Officer under s.143(3), s.147, s.153A or s.153C passed in pursuance of directions of the Panel, or an order under s.154 in respect of such an order. Sub-sections (2A) and (3A) of s.253 were omitted by Act No. 28 of 2016 with effect from 1 June 2016 and are printed as "[***]" on the current departmental editions; what those sub-sections provided is not stated here because no departmental page reached prints their pre-omission text.
Not a judgment; no judicial reasoning is stated for the section. In the words reproduced by the source cited on this page: "Explanation.—For the removal of doubts, it is hereby declared that the power of the Dispute Resolution Panel to enhance the variation shall include and shall be deemed always to have included the power to consider any matter arising out of the assessment proceedings relating to the draft order, notwithstanding that such matter was raised or not by the eligible assessee."
It was decided by the CBDT Circulars & Instructions on 2009-04-01 and is reported as Section 144C(8) with its Explanation and sub-sections (9), (10) and (11) of the Income-tax Act, 1961, heading "Reference to dispute resolution panel", transcribed from incometaxindia.gov.in/w/section-144c-16 (Year: 2025); the Explanation and its footnote 76, "Inserted by the Finance Act, 2012, w.r.e.f. 1-4-2009.", read on incometaxindia.gov.in/w/section-144c-5 (Year: 2014); sub-section (8) without any Explanation read on incometaxindia.gov.in/w/section-144c (Year: 2009); section 253(1)(d) and sub-sections (2A) and (3A) read on incometaxindia.gov.in/w/section-253-63 (Year: 2024 (No. 2)), incometaxindia.gov.in/w/section-253-58 (Year: 2019 (No. 2)), incometaxindia.gov.in/w/section-253-55 (Year: 2016, footnotes 1 and 3) and incometaxindia.gov.in/w/section-253-1 (Year: 2009, footnote 29a); section 246A(1)(a) read on incometaxindia.gov.in/w/section-246a-37 (Year: 2025) and incometaxindia.gov.in/w/section-246a-27 (Year: 2015). Binding on the department, not on the assessee or the courts. An assessee may rely on a circular that is beneficial to them. A CBDT circular or instruction binds officers of the department but not the assessee and not the courts. Where a circular helps you, you may hold the department to it. Where it hurts you, it cannot override the Act or a judgment. On section 144C, section 144C(5), section 144C(13), section 144C(1), section 144C(2), section 144C(15), section 253, section 253(1), section 246A, section 246A(1)(a), section 143(3), section 147, section 153A, section 153C, section 144BA, section 144BA(12), section 92CA, section 92CA(3), the practical question is whether the facts of your own notice match the facts of this case closely enough for the same rule to apply.
It cuts both ways and is cited by both sides. Not a judgment. The statutory position is that the Dispute Resolution Panel may confirm, reduce or enhance the variations proposed in the draft order, but shall not set aside any proposed variation and shall not issue any direction under s.144C(5) for further enquiry and passing of the assessment order; that by the Explanation to s.144C(8), inserted by the Finance Act 2012 with retrospective effect from 1 April 2009, the power to enhance the variation includes and shall be deemed always to have included the power to consider any matter arising out of the assessment proceedings relating to the draft order whether or not that matter was raised by the eligible assessee; that a difference of opinion among the members is decided by the majority; that every direction issued by the Panel is binding on the Assessing Officer; and that no direction under s.144C(5) may be issued unless an opportunity of being heard is given to the assessee, on directions prejudicial to his interest, and to the Assessing Officer, on directions prejudicial to the interest of the revenue. On appeal, s.246A(1)(a) excepts an order passed in pursuance of directions of the Panel from appeal to the Commissioner (Appeals), and s.253(1)(d) gives the assessee a direct appeal to the Appellate Tribunal against an order of an Assessing Officer under s.143(3), s.147, s.153A or s.153C passed in pursuance of directions of the Panel, or an order under s.154 in respect of such an order. Sub-sections (2A) and (3A) of s.253 were omitted by Act No. 28 of 2016 with effect from 1 June 2016 and are printed as "[***]" on the current departmental editions; what those sub-sections provided is not stated here because no departmental page reached prints their pre-omission text. It arises in Assessment & Scrutiny, Appeals, How Tax Law Is Read and Evidence & Burden of Proof matters, on section 144C, section 144C(5), section 144C(13), section 144C(1), section 144C(2), section 144C(15), section 253, section 253(1), section 246A, section 246A(1)(a), section 143(3), section 147, section 153A, section 153C, section 144BA, section 144BA(12), section 92CA, section 92CA(3) of the Income Tax Act 1961, and was decided by Not applicable — statutory text. Before relying on it, read the source linked on this page and check whether it has since been distinguished, overruled or overtaken by an amendment to the Income Tax Act. In practice the steps that follow from it are these. Where the Panel proposes to enhance or to take up a matter you did not raise, insist on the opportunity of being heard that s.144C(11) requires on directions prejudicial to the assessee, and record on the file whether it was given. If the Panel purports to set aside a variation or to direct further enquiry and a fresh assessment order, take the point on the express words of s.144C(8) — it may confirm, reduce or enhance, and it shall not do either of those two things. If the final order departs from the direction, take the point under s.144C(10): every direction issued by the Panel is binding on the Assessing Officer. Do not file a first appeal against the final order. Section 246A(1)(a) excepts an order passed in pursuance of directions of the Dispute Resolution Panel, and s.253(1)(d) gives a direct appeal to the Appellate Tribunal against the order of the Assessing Officer passed in pursuance of those directions, and against a s.154 order in respect of it. For a year before 1 April 2009 do not assume the Explanation applies of its own force to a draft order that predates the section; for every year from that date it does, the Finance Act 2012 having inserted it with retrospective effect from 1-4-2009 on the departmental footnote.
Still good law. The text of s.144C(8) to (11) as stated is current so far as I could establish: it is printed in the same terms on the edition stamped Year 2014 and on the edition stamped Year 2025, the Explanation being absent only from the original edition stamped Year 2009, which is consistent with footnote 76. Year 2025 is the most recent edition of s.144C I reached and I probed no suffix above /w/section-144c-16, so a later amendment cannot be excluded. The s.246A exception is corroborated on editions stamped Year 2015 and Year 2025 and the s.253(1)(d) right on editions stamped Year 2009 and Year 2024 (No. 2), the latter being the most recent s.253 edition I reached and further corroborated by a departmental tutorial page stamped as amended by the Finance Act 2026. The omission of s.253(2A) and (3A) with effect from 1 June 2016 rests on footnotes 1 and 3 on the edition stamped Year 2016; the CONTENT of those two sub-sections is NOT established, no departmental page reached printing their pre-omission text, and nothing in this entry states what they provided. No Finance Act, Gazette notification or judgment was read on this pass. No source could be cited for that finding. Checking whether an authority still stands matters as much as knowing what it held: a decision may be overruled on one point and survive on another, or the provision it interprets may have been amended since. Read the source and the editor's note on this page before relying on it in a reply to an Assessing Officer or in an appeal.
Eight departmental editions of s.144C were opened and their "Year:" stamps recorded: /w/section-144c (Year: 2009), /w/section-144c-5 (Year: 2014), /w/section-144c-10 (Year: 2019 (No. 2)), /w/section-144c-11 (Year: 2021), /w/section-144c-12 (Year: 2022), /w/section-144c-13 (Year: 2023), /w/section-144c-14 (Year: 2024 (No. 1)) and /w/section-144c-16 (Year: 2025). All carry the heading "Reference to dispute resolution panel". Year 2025 is the most recent edition reached and the text in this entry is taken from it. The URL suffix is not a version number: /w/section-144c-10 carries a LATER year stamp than /w/section-144c-5 but /w/section-253-46 carries Year 1974 while /w/section-253-63 carries Year 2024 (No. 2), so no ordering can be read off the suffix. STALE-PAGE WARNING, found this pass. /w/section-144c (Year: 2009) and /w/section-144c-10 (Year: 2019 (No. 2)) both print s.144C(1) with the words "any variation IN THE INCOME OR LOSS RETURNED which is prejudicial to the interest of such assessee", and both print s.144C(15)(b)(ii) as "any foreign company". Both readings are out of date. Footnote 95 on /w/section-144c-11 (Year: 2021) reads verbatim "Words \"in the income or loss returned\" Omtt. by the Act No. 12 of 2020, w.e.f. 1-4-2020." and footnote 97 on the same page reads verbatim "Sub. by the Act No. 12 of 2020, w.e.f. 1-4-2020." against sub-clause (ii). The Year 2025 edition prints (1) without those words and (15)(b)(ii) as "any non-resident not being a company, or any foreign company". /w/section-144c-10 is the second hit the departmental search returns for this section and it is a trap: a reader who takes the definition off it will conclude that a non-resident individual or firm is not an eligible assessee, which has been wrong since 1 April 2020. /w/section-144c (Year: 2009) also prints s.144C(8) with NO Explanation and s.144C(15)(a) as "three Commissioners of Income-tax" rather than "three Principal Commissioners or Commissioners of Income-tax". FOOTNOTE INVENTORY, transcribed verbatim from the editions named. /w/section-144c (Year: 2009), one footnote: "15a. Inserted by the Finance (No. 2) Act, 2009, w.r.e.f. 1-4-2009." /w/section-144c-5 (Year: 2014), footnote against the Explanation to sub-section (8): "76. Inserted by the Finance Act, 2012, w.r.e.f. 1-4-2009." /w/section-144c-10 (Year: 2019 (No. 2)): the "Footnotes" heading is printed but the list under it is EMPTY. /w/section-144c-11 (Year: 2021), three footnotes: "95. Words \"in the income or loss returned\" Omtt. by the Act No. 12 of 2020, w.e.f. 1-4-2020."; "96. Sub-sections (14B) to (14D) Ins. by the Act. No. 38 of 2020, w.e.f. 1-11-2020."; "97. Sub. by the Act No. 12 of 2020, w.e.f. 1-4-2020." /w/section-144c-12 (Year: 2022), one footnote: "91. Sub. by the Act No. 12 of 2020, w.e.f. 1-4-2020." /w/section-144c-13 (Year: 2023), one footnote: "12. Substituted for \"2022\" by the Finance Act, 2022, w.e.f. 1-4-2022." /w/section-144c-14 (Year: 2024 (No. 1)), one footnote: "12. Substituted for \"2024\" by the Finance Act, 2024, w.e.f. 1-4-2024. Earlier \"2024\" was substituted for \"2022\" by the Finance Act, 2022, w.e.f. 1-4-2022." /w/section-144c-16 (Year: 2025), two footnotes: "1. Omtt. by Act 2025, w.e.f. 1-4-2025. Prior to its omission, the proviso, as amended by Act No. 6 of 2022, w.e.f. 1-4-2022 and Act No. 8 of 2024, w.e.f. 1-4-2024, read as under: \"Provided that no direction shall be issued after the 31st day of March, 2025.\""; and "2. Ins. by Act No. 15 of 2024, w.e.f. 1-9-2024." I have NOT verified the short title of any of Act No. 12 of 2020, Act No. 38 of 2020, Act No. 6 of 2022, Act No. 8 of 2024, Act No. 15 of 2024, Act No. 25 of 2014, Act No. 20 of 2015 or Act No. 28 of 2016 against a government source; the Act numbers are what the departmental pages print and are what this library states. Footnote 1 on the Year 2025 page names the omitting Act only as "Act 2025", which is how it is printed. DEAD URLS IN THE DEPARTMENTAL SEARCH INDEX. Three .htm addresses were returned by WebSearch on incometaxindia.gov.in and every one of them returned HTTP 404 on WebFetch: /Acts/Income-tax%20Act,%201961/2013/102120000000027075.htm (indexed as "Reference to dispute resolution panel."), /Acts/Income-tax%20Act,%201961/2021/102120000000077655.htm and /Acts/Income-tax%20Act,%201961/2019/102120000000073641.htm (both indexed as "Appeals to the Appellate Tribunal"). The content of those three pages is not available to me and nothing in this entry rests on them. THE DATE OF THE EXPLANATION TO s.144C(8), WHICH THE BRIEF ASKED ME TO CHECK. It is NOT 2012. Footnote 76 on incometaxindia.gov.in/w/section-144c-5 (Year: 2014), printed against the bracketed Explanation, reads verbatim: "Inserted by the Finance Act, 2012, w.r.e.f. 1-4-2009." The amending Act is the Finance Act 2012 but the effect is retrospective to 1 April 2009, which is the date the section itself was inserted from per footnote 15a on the Year 2009 page. The original edition at /w/section-144c (Year: 2009) prints sub-section (8) with NO Explanation, which corroborates the insertion. 'decided_on' for this entry is therefore 2009-04-01 and not 2012-04-01. WHAT I COULD NOT ESTABLISH ON THE s.253 POINT, AND SAY SO. The current departmental editions of s.253 print sub-sections (2A) and (3A) as "[***]" with NO footnote: /w/section-253-58 (Year: 2019 (No. 2)) and /w/section-253-63 (Year: 2024 (No. 2)) both do so, and the fetch of the latter demanding every footnote relating to (2A) or (3A) returned none among the eight footnotes numbered 72 to 79 on that page. The omission is footnoted only on the older edition /w/section-253-55 (Year: 2016), where footnote 1 against (2A) and footnote 3 against (3A) each read verbatim "Omtt. by Act No. 28 of 2016 (w.e.f. 1-6-2016)." That is the whole of my source for 1 June 2016. NO DEPARTMENTAL FOOTNOTE I REACHED PRINTS THE PRE-OMISSION TEXT OF s.253(2A) OR s.253(3A), and a direct fetch of the complete footnote list on /w/section-253-55 confirmed that none of its twelve footnotes does. This library therefore does NOT state what those two sub-sections provided, and in particular does not state on departmental authority that they conferred a departmental right of appeal against an order under s.144C(13); what is established is that two sub-sections numbered (2A) and (3A) stood in s.253 and were omitted by Act No. 28 of 2016 with effect from 1 June 2016. I have not verified the short title of Act No. 28 of 2016 from a government source. STALE s.253 PAGES FOUND THIS PASS: /w/section-253-46 (Year: 1974) and /w/section-253-18 (Year: 1996) print s.253(1) with clauses (a), (b) and (c) only, with NO clause (d) and no mention of the Dispute Resolution Panel anywhere; the URL suffix is no guide to the year, the Year 1974 page being suffix 46 and the Year 2024 (No. 2) page suffix 63. The insertion of clause (d) is footnoted on /w/section-253-1 (Year: 2009) as "29a. Inserted by the Finance (No. 2) Act, 2009, w.e.f. 1-10-2009." A DEPARTMENTAL TUTORIAL PAGE, incometaxindia.gov.in/w/appeal-to-the-income-tax-appellate-tribunal, carrying the stamp "as amended by the Finance Act, 2026", lists among appealable orders "An order passed by the Assessing Officer under section 143(3) or under section 147 or under section 153A or under section 153C in pursuance of the direction of Dispute Resolution Panel or a rectification order passed under section 154 in respect of such order", which corroborates that clause (d) is still in force; that page says nothing about any departmental right of appeal against such an order. For s.246A, /w/section-246a-37 (Year: 2025) and /w/section-246a-27 (Year: 2015) both print the exception for an order passed in pursuance of directions of the Dispute Resolution Panel, the Year 2015 page carrying it in clause (1)(b) as well as (1)(a). I read no judgment on this pass and make no statement about what any case holds. 'bench' and 'favours' are inapplicable to a statutory entry. This library shows the verification state of every entry openly. This entry has not yet been read in full by a chartered accountant. The summary reflects the sources listed on this page. Read the source before you rely on it in a reply to an Assessing Officer or in an appeal before the Commissioner (Appeals) or the Income Tax Appellate Tribunal.
Not a judgment. The statutory position is that the Dispute Resolution Panel may confirm, reduce or enhance the variations proposed in the draft order, but shall not set aside any proposed variation and shall not issue any direction under s.144C(5) for further enquiry and passing of the assessment order; that by the Explanation to s.144C(8), inserted by the Finance Act 2012 with retrospective effect from 1 April 2009, the power to enhance the variation includes and shall be deemed always to have included the power to consider any matter arising out of the assessment proceedings relating to the draft order whether or not that matter was raised by the eligible assessee; that a difference of opinion among the members is decided by the majority; that every direction issued by the Panel is binding on the Assessing Officer; and that no direction under s.144C(5) may be issued unless an opportunity of being heard is given to the assessee, on directions prejudicial to his interest, and to the Assessing Officer, on directions prejudicial to the interest of the revenue. On appeal, s.246A(1)(a) excepts an order passed in pursuance of directions of the Panel from appeal to the Commissioner (Appeals), and s.253(1)(d) gives the assessee a direct appeal to the Appellate Tribunal against an order of an Assessing Officer under s.143(3), s.147, s.153A or s.153C passed in pursuance of directions of the Panel, or an order under s.154 in respect of such an order. Sub-sections (2A) and (3A) of s.253 were omitted by Act No. 28 of 2016 with effect from 1 June 2016 and are printed as "[***]" on the current departmental editions; what those sub-sections provided is not stated here because no departmental page reached prints their pre-omission text.
TaxSphere, “Statutory position — s.144C(8) with its Explanation, and s.144C(10) and (11): the Panel may confirm, reduce or ENHANCE but may not set aside or remit, the Explanation inserted by the Finance Act 2012 is retrospective to 1 April 2009, the direction binds the Assessing Officer, and no direction may issue without an opportunity of being heard — with what s.253 and s.246A provide about appeal”, https://taxnotice.vittsphere.com/caselaw/case/statutory-position-144c-8-and-10-what-the-dispute-resolution-panel-may-and-may-not-do/ (validity last checked 2026-09-17)
The judgment itself is a government work and may be quoted freely. The summary, the validity note and the reasoning on this page are this library's own writing: quote them with attribution, and please do not present either as the words of the court — this page keeps the two apart and so should a quotation of it.
Every entry in this library links to where it was found, so you can check it yourself rather than take our word for it.
The Assessing Officer has served a final assessment order on our foreign company raising a transfer pricing addition, without ever serving a draft order. Was he obliged to serve one first, and what was I supposed to do with it if he had?
We received a draft order on 12 March. Nobody objected. When was the final order due, and if we had objected, by when must the Dispute Resolution Panel have issued its directions and by when must the officer have given effect to them?
The Assessing Officer has forwarded a draft order to our partnership firm, which is non-resident but is not a company, and there is no Transfer Pricing Officer's order in the case. Is the firm an eligible assessee at all, and does it matter which assessment year we are in?
The officer took the TPO's adjustment straight into a final order without giving me a draft order. The department says s.292B cures it. Does it?
