CA Final · Direct Tax Laws & International Taxation · Dispute Resolution
Ramesh Traders, a resident assessee, has a specified order under section 379 in which the aggregate variations proposed are Rs 8 lakh and the order is not based on search, requisition, survey or treaty information. The return filed shows total income of Rs 55 lakh. Can it seek resolution by the Dispute Resolution Committee?
Ramesh Traders cannot approach the Dispute Resolution Committee because the return shows total income of Rs 55 lakh, above the fifty lakh limit in section 379(4)(iii). The other conditions are met, but all conditions of a specified order must be satisfied together.
- AYes, because aggregate variations are within ten lakh rupees
- BYes, because the order is not based on search or survey
- CNo, because total income per the return exceeds fifty lakh rupeesCorrect
- DNo, because the Committee can deal only with draft orders
Explanation
Section 379(4) defines a specified order by cumulative conditions: variations not above Rs 10 lakh, no search, requisition, survey or treaty-information basis, and, where a return is filed, total income per the return not above Rs 50 lakh. Rs 8 lakh variation and absence of search satisfy two conditions, but Rs 55 lakh income fails the third. The Committee can also handle orders other than drafts.
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