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CMA Final · Direct Tax Laws and International Taxation · Assessment Procedure including Dispute Resolution Process

A Dispute Resolution Committee is considering an application. The order in dispute is not based on search or survey. The aggregate variations proposed are Rs 8 lakh. For different assessees the total income per the return filed is stated below. For which assessee does the order satisfy the conditions of a 'specified order' as to variation and returned income under the Income-tax Act, 2025?

The assessee with total income per return of Rs 48 lakh qualifies. Variations of Rs 8 lakh are within the Rs 10 lakh ceiling, and returned income must not exceed Rs 50 lakh, a limit that the Rs 51, 55 and 62 lakh cases breach.

  1. ATotal income per return Rs 62 lakh, variations Rs 8 lakh
  2. BTotal income per return Rs 48 lakh, variations Rs 8 lakhCorrect
  3. CTotal income per return Rs 55 lakh, variations Rs 8 lakh
  4. DTotal income per return Rs 51 lakh, variations Rs 8 lakh

Explanation

Under section 379(4), aggregate variations must not exceed Rs 10 lakh, which Rs 8 lakh satisfies. Where a return is filed, total income per return must not exceed Rs 50 lakh. Only Rs 48 lakh meets this; Rs 51, 55 and 62 lakh exceed the limit.

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