DRP Representation · Panaji, Goa

Transfer Pricing — DRP

Expert Dispute Resolution Panel (DRP) representation — 30-day objection filing, written submissions, oral hearings, and directions before the DRP collegium by qualified Chartered Accountants in Goa.

Overview

The DRP — India's specialist TP tribunal.

The Dispute Resolution Panel (DRP) is a collegium of three Principal Commissioners or Commissioners of Income Tax constituted under Section 144C of the Income Tax Act. When the Assessing Officer proposes to make a variation in the returned income that is prejudicial to the taxpayer — typically incorporating a TPO adjustment — the AO must first issue a draft assessment order. An eligible taxpayer then has exactly 30 days to file objections before the DRP.

The DRP has sweeping powers: it can enhance, reduce, or confirm the draft order, and its directions are binding on the Assessing Officer. DRP proceedings have historically been faster than CIT(A) and the DRP often provides more substantive engagement on technical TP issues. An unsuccessful DRP outcome can still be appealed directly to ITAT. Our TP appeals team works in tandem with the DRP practice.

What we cover

DRP representation — from objection to direction.

Every stage of the DRP proceeding handled with precision and speed.

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Draft Order Analysis

Reviewing the draft assessment order and the underlying TPO order to identify every point of adjustment, assess its merits, and determine the strongest grounds for DRP objection.

Objection Filing — Within 30 Days

Drafting and filing the objection petition before the DRP within the strict 30-day window, covering all transactions and grounds — late filing results in loss of DRP access entirely.

Written Submissions

Preparing comprehensive written submissions with economic analysis, comparable rejection arguments, functional characterisation defence, Indian and international case law, and OECD Guideline references.

Oral Hearing Before DRP

Presenting oral arguments before the three-member DRP collegium, responding to panel queries, and supplementing the written submissions with additional data or analysis as required.

Response to DRP Queries

Answering information requests from the DRP panel promptly and completely, including fresh benchmarking data, audited financials, or economic studies.

Post-Direction Strategy

Analysing the DRP's directions, computing the resulting tax impact, and advising on whether to accept the DRP outcome or file a further appeal to ITAT (which is available even after DRP directions).

The DRP process

From draft order to DRP direction — step by step.

Day 0

Draft Assessment Order

AO issues draft order incorporating TPO adjustment. The 30-day DRP objection window begins immediately.

Day 30

Objection Deadline

Taxpayer must file DRP objection within 30 days. Missing this deadline forfeits the DRP route entirely.

1–6 months

DRP Proceedings

Written submissions, oral hearings, and information rounds before the three-member DRP panel.

After Direction

Final Order & ITAT

AO passes final order per DRP directions. Taxpayer can still appeal to ITAT within 60 days.

Frequently asked questions

DRP for transfer pricing, answered.

Who is eligible to file objections before the DRP?

Eligible assessees under Section 144C include: non-resident taxpayers; foreign companies; and any assessee in whose case a variation is proposed in the returned income of an international transaction or specified domestic transaction. Indian residents with only domestic TP adjustments may not be eligible for DRP if the variation does not involve an international transaction.

What is the time limit to file DRP objections?

The objection must be filed before the DRP within 30 days of receipt of the draft assessment order. There is no provision for condonation of delay — if the 30-day window is missed, the AO will pass the final assessment order as per the draft, and the taxpayer can only appeal to CIT(A). Immediate action on receiving the draft order is therefore critical.

What powers does the DRP have?

The DRP can confirm, reduce, or enhance the proposed variation — it can actually increase the adjustment if the DRP believes the AO/TPO has under-assessed. The DRP can direct the AO to make further enquiries. DRP directions are binding on the AO, and the AO must pass the final order within one month of receiving directions. The taxpayer can appeal DRP directions to ITAT; the revenue cannot file further appeal against DRP directions.

How is DRP different from CIT(A)?

DRP is a pre-assessment remedy — objections are filed against a draft order before the final assessment is completed, giving the taxpayer an opportunity to reduce or eliminate the adjustment before it crystallises. CIT(A) is a post-assessment remedy — appeal against a final assessment order. DRP directions are binding on the AO; CIT(A) orders are appealable by both parties. DRP proceedings are typically faster and have a collegial format that allows more substantive engagement.

Can the DRP enhance the assessment beyond the TPO's order?

Yes. The DRP has the power to enhance the variation proposed by the AO — it can direct the AO to make an assessment higher than the draft order. In practice, this power is exercised rarely, but it means the DRP objection process carries some risk of an enhanced outcome if the DRP identifies additional adjustments. A careful analysis of all transactions and the draft order is essential before deciding to file DRP objections.

Can a taxpayer appeal to ITAT after receiving DRP directions?

Yes. A taxpayer who is aggrieved by DRP directions can file an appeal to ITAT within 60 days of receiving the final assessment order passed pursuant to DRP directions. Unlike CIT(A) orders (which can be appealed by both parties), DRP directions can only be challenged by the taxpayer — the revenue cannot file an appeal against DRP directions at ITAT. This makes the DRP an asymmetric process that generally favours the taxpayer.

Draft order received? The clock is ticking.

You have exactly 30 days from the draft assessment order. Our qualified CAs in Panaji, Goa will file a comprehensive DRP objection, prepare incisive economic submissions, and represent you at the oral hearing — immediately.