DRP must give “cogent and germane reasons” in support of s. 144C directions
The assessee filed a Writ Petition to challenge the order of the Dispute Resolution Panel (DRP) on the ground, inter alia, that the DRP had not given any reasons in support of its directions to the AO. Before the High Court, the DRP conceded that its order “deserved to be quashed”. HELD quashing the DRP’s order:
When a quasi judicial authority (like the DRP) deals with a lis, it is obligatory on its part to ascribe cogent and germane reasons as the same is the heart and soul of the matter. And further, the same also facilitates appreciation when the order is called in question before the superior forum.