A perusal of the above shows that the provisions of section 144C provides\u00a0the entire mechanism for making a reference to the DRP; the power of the DRP\u00a0and also the procedures which have to be followed to issue the direction to the AO\u00a0are fully set out therein. On a perusal of the statutory provisions it can be seen that\u00a0(a) where the objections have been filed by the assessee the DRP has to issue\u00a0directions to the AO for his guidance so as to enable him to complete the\u00a0assessment; (b) such directions can be given after considering the various factors\u00a0which have been elaborated in sub-section (6); (c) the DRP has also been conferred\u00a0with the power to make an enquiry and to issue any directions as per sub-section\u00a0(7); (d) sub-section (8) places a limitation on the powers of the DRP to either\u00a0confirm, reduce or enhance the variation proposed by the AO in the draft\u00a0assessment order. The statue does not stop there, it further clarifies that the\u00a0DRP does not have any power to set aside any proposed variation or issue\u00a0direction for further enquiry and passing of the assessment order thereby\u00a0meaning the DRP has to come to a clear cut direction to be given to the AO;\u00a0(e) sub-section (9) address the procedures where the DRP members differ we are\u00a0not concerned in the present proceedings with the same; (f) sub-section (10) makes\u00a0the direction given by the DRP binding on the AO; (g) sub-section (11) enunciates\u00a0the rules of fair play and natural justice by ensuring that in the eventuality a\u00a0direction under sub-section (5) which is pre-judicial to the interests of the assessee\u00a0or the Revenue has been given in such an eventuality an opportunity of being\u00a0heard has to be granted to the assessee or the AO by the DRP; (h) the sub-section\u00a012 gives the limitation within which the direction under sub-section (5) is to be\u00a0given effect to by the AO; (i) sub-section (13) mandates the AO to pass an order in\u00a0conformity with the direction of the DRP without providing an opportunity to the\u00a0assessee.<\/p>\n","protected":false},"excerpt":{"rendered":"
A perusal of the above shows that the provisions of section 144C provides\u00a0the entire mechanism for making a reference to the DRP; the power of the DRP\u00a0and also the procedures which have to be followed to issue the direction to …<\/p>\n