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CA Final · Direct Tax Laws & International Taxation · Dispute Resolution

Consider these four cases, in each of which the assessee wishes to opt for dispute resolution before a Dispute Resolution Committee. The order is a specified order and the variation conditions are as stated. Under section 379(4), in which case are the stated conditions satisfied?

Only the case with variations of Rs 8 lakh and return income of Rs 45 lakh, not based on search or survey, qualifies. Section 379(4) requires variations not above Rs 10 lakh, return income not above Rs 50 lakh, and no search, requisition, survey or treaty-information basis.

  1. AAggregate variations Rs 8 lakh; return total income Rs 45 lakh; order not based on search or surveyCorrect
  2. BAggregate variations Rs 8 lakh; return total income Rs 55 lakh; order not based on search or survey
  3. CAggregate variations Rs 12 lakh; return total income Rs 30 lakh; order not based on search or survey
  4. DAggregate variations Rs 6 lakh; return total income Rs 20 lakh; order based on a survey under section 253

Explanation

Section 379(4) requires aggregate variations not exceeding Rs 10 lakh, no basis in search, requisition, survey or treaty-exchange information, and return total income not exceeding Rs 50 lakh. Option A meets all three. Option B fails as total income exceeds Rs 50 lakh, option C fails as variations exceed Rs 10 lakh, and option D fails as the order is based on a survey.

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