2025 (5) TMI 533 - SCH - Income Tax

SC confirms DRP's authority ends after assessment order under Section 144C(5); no directions post-assessment order

The SC upheld the HC's decision that the dispute resolution panel (DRP) has authority to issue directions only during pending assessment proceedings under ... Validity of order passed u/s 144C(5) - Reference to dispute resolution panel - [2023 (9) TMI 759 - BOMBAY HIGH COURT] - as decided by HC [2023 (9) TMI 759 - BOMBAY HIGH COURT] DRP could give directions only in pending assessment proceedings. Once assessment order is passed, rightly or wrongly, the assessment proceedings come to an end. Therefore, the DRP would have no power to pass any directions contemplated under subsection 5 of Section 144C of the Act. Thus quash and set aside the directions issued by DRP and the consequent assessment order. HELD THAT:- After having heard the learned counsel appearing for the petitioners, we find no error in the view taken by the High Court. Special Leave Petition is, accordingly, dismissed. The Supreme Court, with Hon'ble Justices Abhay S. Oka and Ujjal Bhuyan presiding, after hearing counsel for the petitioner, 'found no error in the view taken by the High Court.' The Court 'condoned delay' and dismissed the Special Leave Petition. The pending application was disposed of accordingly.