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

Kiran Traders, a resident individual, filed a return for a tax year showing total income of Rs. 42 lakh. An assessment order proposes aggregate variations of Rs. 8 lakh. The order is not based on search, requisition, survey or information received under a tax treaty agreement. Applying the conditions in section 379 of the Income-tax Act, 2025 for a specified order, which statement is correct?

The order meets the conditions for a specified order: aggregate variations of Rs. 8 lakh are within Rs. 10 lakh, return income of Rs. 42 lakh is within Rs. 50 lakh, and it is not based on search, survey, requisition or treaty information, per section 379(4).

  1. AThe order qualifies, since variations do not exceed Rs. 10 lakh and return income does not exceed Rs. 50 lakhCorrect
  2. BThe order does not qualify because return income exceeds Rs. 25 lakh
  3. CThe order does not qualify because only company assessees may approach the Committee
  4. DThe order does not qualify because variations must not exceed Rs. 5 lakh

Explanation

Section 379(4) requires aggregate variations not exceeding Rs. 10 lakh, no basis in search, requisition, survey or treaty information, and return income not exceeding Rs. 50 lakh. All are met: Rs. 8 lakh variation and Rs. 42 lakh income. The other thresholds are invented.

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