|Diva Singh (JM), Sudhakar Reddy (AM)
|delegation, DRP, remand
|Ajay Vohra, Rohit Garg
|September 26, 2014 (Date of pronouncement)
|October 4, 2014 (Date of publication)
|Click here to download the file in pdf format
|The DRP shall give clear and speaking directions to the AO for passing the assessment order and the statute ensures that the said power is not delegated to the AO.
A perusal of the above shows that the provisions of section 144C provides the entire mechanism for making a reference to the DRP; the power of the DRP and also the procedures which have to be followed to issue the direction to the AO are fully set out therein. On a perusal of the statutory provisions it can be seen that (a) where the objections have been filed by the assessee the DRP has to issue directions to the AO for his guidance so as to enable him to complete the assessment; (b) such directions can be given after considering the various factors which have been elaborated in sub-section (6); (c) the DRP has also been conferred with the power to make an enquiry and to issue any directions as per sub-section (7); (d) sub-section (8) places a limitation on the powers of the DRP to either confirm, reduce or enhance the variation proposed by the AO in the draft assessment order. The statue does not stop there, it further clarifies that the DRP does not have any power to set aside any proposed variation or issue direction for further enquiry and passing of the assessment order thereby meaning the DRP has to come to a clear cut direction to be given to the AO; (e) sub-section (9) address the procedures where the DRP members differ we are not concerned in the present proceedings with the same; (f) sub-section (10) makes the direction given by the DRP binding on the AO; (g) sub-section (11) enunciates the rules of fair play and natural justice by ensuring that in the eventuality a direction under sub-section (5) which is pre-judicial to the interests of the assessee or the Revenue has been given in such an eventuality an opportunity of being heard has to be granted to the assessee or the AO by the DRP; (h) the sub-section 12 gives the limitation within which the direction under sub-section (5) is to be given effect to by the AO; (i) sub-section (13) mandates the AO to pass an order in conformity with the direction of the DRP without providing an opportunity to the assessee.