Income-tax authorities authorized to file an appeal to Income-tax Appellate Tribunal against the order passed in pursuance of the directions of the Dispute Resolution Panel [Sections 253 & 254] :

(i) As per section 144C(8), the DRP has the power to confirm, reduce or enhance the variation proposed in the draft order. Under section 144C(10), the directions given by the Dispute Resolution Panel (DRP) are binding on the Assessing Officer. The taxpayer has been given a right to appeal directly to the Income-tax Appellate Tribunal (ITAT) against the order passed by the Assessing Officer in pursuance of the directions of the DRP.

(ii) By virtue of the provisions of section 253(2A), the Department is also vested with the right to file an appeal against the directions given by the DRP. Section 253(2A) provides that:

(1) in case the Assessing Officer passes any order completing the assessment or reassessment in pursuance of the direction issued by the DRP under section 144C(5), in respect of any objection filed by the assessee under section 144C(2) on or after 1st July, 2012, and

(2) the Principal Commissioner or Commissioner objects to such direction issued by the DRP, then the Principal Commissioner or Commissioner may direct the Assessing Officer to file an appeal to the Appellate Tribunal against the order.

(iii) Every appeal under sub-section (2A) shall be filed within 60 days of the date on which the order sought to be appealed against is passed by the Assessing Officer in pursuance of the directions of the DRP under section 144C(5).

(iv) Further, the Assessing Officer or the assessee, as the case may be, on receipt of a notice that an appeal has been filed against the order passed in pursuance of the directions of the DRP under this section by the other party, may file a memorandum of cross-objections, against such order or any part of such order of the Assessing Officer within 30 days of receipt of such notice. This is irrespective of the Assessing Officer or the assessee, as the case may be, not having filed an appeal against such order or any part thereof.

Such memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the specified time period.

(v) In respect of every appeal filed under section 253(2A), the Appellate Tribunal, where it is possible, may hear and decide such appeal within a period of 4 years from the end of the financial year in which such appeal is filed. [Section 254(2A)]