The Classic Partners LLP

Transfer Pricing — Dispute Resolution Panel (DRP)

The DRP under Section 144C is a fast-track forum for eligible assessees to challenge draft assessment orders containing transfer pricing adjustments — before any demand arises. We draft and argue DRP objections that change outcomes.

File Your DRP Objection

What is the DRP?

The Dispute Resolution Panel is a collegium of three Principal Commissioners/Commissioners that reviews draft assessment orders under Section 144C. It exists primarily for transfer pricing cases: where the TPO's adjustment is incorporated in a draft order, the eligible assessee can object to the DRP instead of waiting for a final order and appealing.

Who Can Approach the DRP and How

Eligible assessee: any person in whose case the TPO has made a variation, and any foreign company.
Trigger: the Assessing Officer must first pass a draft order — a final order without this step is challengeable.
Timeline: objections in Form 35A within 30 days of receiving the draft order.
Directions: the DRP issues binding directions to the AO within nine months from the end of the month the draft order was forwarded.
No demand crystallises until the final order is passed pursuant to DRP directions — a major cash-flow advantage.

DRP vs CIT(A): Choosing the Route

Speed: DRP directions within nine months vs multi-year CIT(A) timelines.
Cash flow: no recoverable demand during DRP proceedings.
Binding effect: DRP directions bind the AO; the department cannot appeal against them.
Next step: the final order after DRP is appealable directly to the ITAT — see transfer pricing appeals.
Trade-off: DRP rarely admits fresh evidence liberally, so the record before the TPO must already be strong.

Our DRP Services

Draft Order Review

Issue-wise dissection of the TPO's order and the AO's draft.

Form 35A Objections

Ground-wise objections with evidence paper books.

Hearing Representation

Argument before the Panel on comparables, law, and economics.

Direction Implementation

Ensuring the final order faithfully follows DRP directions.

ITAT Continuation

Seamless escalation via TP appeals where needed.

Strategy Counsel

DRP vs CIT(A) route evaluation for each year and issue.

Frequently Asked Questions

What is the Dispute Resolution Panel?

A three-member panel of Commissioners constituted under Section 144C that hears objections of eligible assessees against draft assessment orders — principally those containing transfer pricing adjustments — and issues directions binding on the Assessing Officer.

What is the time limit to file objections before the DRP?

Objections in Form 35A must be filed within 30 days of receipt of the draft assessment order, with copies to the DRP and the Assessing Officer.

How long does the DRP take to decide?

The DRP must issue its directions within nine months from the end of the month in which the draft order is forwarded to the assessee.

Is tax payable while DRP proceedings are pending?

No demand arises at the draft-order stage; tax becomes payable only after the final assessment order is passed in conformity with the DRP's directions.

Can the department appeal against DRP directions?

No. DRP directions are binding on the Assessing Officer and the department cannot appeal against them; the assessee, however, may appeal the final order to the ITAT.

Received a draft order with a TP adjustment?

You have 30 days. Let us file the DRP objection and stop the demand before it starts.