CA Final · Direct Tax Laws & International Taxation · Dispute Resolution
Ravi Textiles, an assessee, has a specified order under section 379 in which the aggregate variations proposed are Rs 8 lakh, the order is not based on a search, requisition, survey or treaty information, and the assessee filed a return for the tax year. Up to what maximum total income per the return will the 'specified order' conditions under section 379(4) be satisfied?
The ceiling is Rs 50 lakh. For a specified order, section 379(4) also requires aggregate variations not exceeding Rs 10 lakh, which Rs 8 lakh meets, and the order must not be based on search, requisition, survey or treaty information. Where a return is filed, its total income must not exceed Rs 50 lakh.
- ARs 10 lakh
- BRs 25 lakh
- CRs 50 lakhCorrect
- DRs 75 lakh
Explanation
Section 379(4)(iii) requires that, where a return is filed, total income per the return does not exceed fifty lakh rupees. The variation of Rs 8 lakh is within the Rs 10 lakh limit in clause (i), and clause (ii) is also satisfied on the facts. So the return income ceiling is Rs 50 lakh.
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