Section 144A of Income Tax Act "Power of Joint Commissioner to issue directions in certain cases"
144A. A Joint Commissioner may, on his own motion or on a
reference being made to him by the Assessing Officer or on
the application of an assessee, call for and examine the
record of any proceeding in which an assessment is pending
and, if he considers that, having regard to the nature of
the case or the amount involved or for any other reason, it
is necessary or expedient so to do, he may issue such
directions as he thinks fit for the guidance of the
Assessing Officer to enable him to complete the assessment
and such directions shall be binding on the Assessing
Officer :
Provided that no directions which are prejudicial to the
assessee shall be issued before an opportunity is given to
the assessee to be heard.
Explanation.-For the purposes of this section no direction
as to the lines on which an investigation connected with the
assessment should be made, shall be deemed to be a direction
prejudicial to the assessee.
144BA. (1) If, the Assessing Officer, at any stage of the
assessment or reassessment proceedings before him having
regard to the material and evidence available, considers
that it is necessary to declare an arrangement as an
impermissible avoidance arrangement and to determine the
consequence of such an arrangement within the meaning of
Chapter X-A, then, he may make a reference to the Principal
Commissioner or Commissioner in this regard.
(2) The Principal Commissioner or Commissioner shall, on
receipt of a reference under sub-section (1), if he is of
the opinion that the provisions of Chapter X-A are required
to be invoked, issue a notice to the assessee, setting out
the reasons and basis of such opinion, for submitting
objections, if any, and providing an opportunity of being
heard to the assessee within such period, not exceeding
sixty days, as may be specified in the notice.
(3) If the assessee does not furnish any objection to the
notice within the time specified in the notice issued under
sub-section (2), the Principal Commissioner or Commissioner
shall issue such directions as he deems fit in respect of
declaration of the arrangement to be an impermissible
avoidance arrangement.
(4) In case the assessee objects to the proposed action,
and the Principal Commissioner or Commissioner after hearing
the assessee in the matter is not satisfied by the
explanation of the assessee, then, he shall make a reference
in the matter to the Approving Panel for the purpose of
declaration of the arrangement as an impermissible avoidance
arrangement.
(5) If the Principal Commissioner or Commissioner is
satisfied, after having heard the assessee that the
provisions of Chapter X-A are not to be invoked, he shall by
an order in writing, communicate the same to the Assessing
Officer with a copy to the assessee.
(6) The Approving Panel, on receipt of a reference from the
Principal Commissioner or Commissioner under sub-section
(4), shall issue such directions, as it deems fit, in
respect of the declaration of the arrangement as an
impermissible avoidance arrangement in accordance with the
provisions of Chapter X-A including specifying of the
previous year or years to which such declaration of an
arrangement as an impermissible avoidance arrangement shall
apply.
(7) No direction under sub-section (6) 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
interests of the revenue, as the case may be.
(8) The Approving Panel may, before issuing any direction
under sub-section (6),-
(i) if it is of the opinion that any further inquiry in the
matter is necessary, direct the Principal Commissioner or
Commissioner to make such inquiry or cause the inquiry to be
made by any other income-tax authority and furnish a report
containing the result of such inquiry to it; or
(ii) call for and examine such records relating to the
matter as it deems fit; or
(iii) require the assessee to furnish such documents and
evidence as it may direct.
(9) If the members of the Approving Panel differ in opinion
on any point, such point shall be decided according to the
opinion of the majority of the members.
(10) The Assessing Officer, on receipt of directions of the
Principal Commissioner or Commissioner under sub-section (3)
or of the Approving Panel under sub-section (6), shall
proceed to complete the proceedings referred to in
sub-section (1) in accordance with such directions and the
provisions of Chapter X-A.
(11) If any direction issued under sub-section (6) specifies
that declaration of the arrangement as impermissible
avoidance arrangement is applicable for any previous year
other than the previous year to which the proceedings
referred to in sub-section (1) pertains, then, the Assessing
Officer while completing any assessment or reassessment
proceedings of the assessment year relevant to such other
previous year shall do so in accordance with such directions
and the provisions of Chapter X-A and it shall not be
necessary for him to seek fresh direction on the issue for
the relevant assessment year.
(12) No order of assessment or reassessment shall be passed
by the Assessing Officer without the prior approval of the
Principal Commissioner or Commissioner, if any tax
consequences have been determined in the order under the
provisions of Chapter X-A.
(13) The Approving Panel shall issue directions under
sub-section (6) within a period of six months from the end
of the month in which the reference under sub-section (4)
was received.
(14) The directions issued by the Approving Panel under
sub-section (6) shall be binding on-
(i) the assessee; and
(ii) the Principal Commissioner or Commissioner and the
income-tax authorities subordinate to him,
and notwithstanding anything contained in any other
provision of the Act, no appeal under the Act shall lie
against such directions.
(15) The Central Government shall, for the purposes of this
section, constitute one or more Approving Panels as may be
necessary and each panel shall consist of three members
including a Chairperson.
(16) The Chairperson of the Approving Panel shall be a
person who is or has been a judge of a High Court, and-
(i) one member shall be a member of Indian Revenue Service
not below the rank of Principal Chief Commissioner or Chief
Commissioner of Income-tax; and
(ii) one member shall be an academic or scholar having
special knowledge of matters, such as direct taxes, business
accounts and international trade practices.
(17) The term of the Approving Panel shall ordinarily be for
one year and may be extended from time to time up to a
period of three years.
(18) The Chairperson and members of the Approving Panel
shall meet, as and when required, to consider the references
made to the panel and shall be paid such remuneration as may
be prescribed.
(19) In addition to the powers conferred on the Approving
Panel under this section, it shall have the powers which are
vested in the Authority for Advance Rulings under section
245U.
(20) The Board shall provide to the Approving Panel such
officials as may be necessary for the efficient exercise of
powers and discharge of functions of the Approving Panel
under the Act.
(21) The Board may make rules for the purposes of the
constitution and efficient functioning of the Approving
Panel and expeditious disposal of the references received
under sub-section (4).
Explanation.-In computing the period referred to in
sub-section (13), the following shall be excluded-
(i) the period commencing from the date on which the first
direction is issued by the Approving Panel to the Principal
Commissioner or Commissioner for getting the inquiries
conducted through the authority competent under an agreement
referred to in section 90 or section 90A and ending with the
date on which the information so requested is last received
by the Approving Panel or one year, whichever is less;
(ii) the period during which the proceeding of the Approving
Panel is stayed by an order or injunction of any court:
Provided that where immediately after the exclusion of the
aforesaid time or period, the period available to the
Approving Panel for issue of directions is less than sixty
days, such remaining period shall be extended to sixty days
and the aforesaid period of six months shall be deemed to
have been extended accordingly.
What is Disclosure of information respecting assessees? Section 138 of Income Tax Act 1961
What is Return of income? Section 139 of Income Tax Act 1961
What is Permanent account number? Section 139A of Income Tax Act 1961
What is Assessment? What is Best judgment assessment? Section 143 and 144 of Income Tax Act 1961
What is Reference to dispute resolution panel? Section 144C of Income Tax Act 1961