CA Final · Direct Tax Laws & International Taxation · Dispute Resolution
Aarav Traders, a resident individual, faces a specified order with aggregate variations of ₹8 lakh. It is not based on search, requisition, survey or treaty information. Its return shows total income of ₹55 lakh. Can it opt for the Dispute Resolution Committee under section 379 of the Income-tax Act, 2025?
Aarav Traders cannot opt for the Committee. Although variations are within ten lakh rupees and the order is not search-based, total income per the return is ₹55 lakh, which exceeds the fifty lakh limit that section 379(4)(iii) imposes on eligibility.
- ANo, because total income per the return exceeds fifty lakh rupeesCorrect
- BYes, because variations do not exceed ten lakh rupees
- CYes, because the order is not based on a search
- DNo, because individuals cannot approach the Committee
Explanation
Section 379(4) requires, among other conditions, that where a return is filed, total income per the return must not exceed fifty lakh rupees. Here it is ₹55 lakh, so the condition fails even though the variation limit of ten lakh and the no-search condition are met.
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