Skip to content

CMA Final · Direct Tax Laws and International Taxation · Assessment Procedure including Dispute Resolution Process

Under section 379 of the Income-tax Act, 2025, a Dispute Resolution Committee can deal with a dispute only if the specified order meets stated conditions. Which of the following cases satisfies all the conditions for a specified order?

The case with Rs 9 lakh variations, no search, requisition, survey or treaty-information basis, and return income of Rs 48 lakh qualifies. It is within the Rs 10 lakh variation ceiling and the Rs 50 lakh return income ceiling.

  1. AAggregate variations of Rs 8 lakh; order based on a search under section 247; return income Rs 30 lakh
  2. BAggregate variations of Rs 9 lakh; order not based on search, requisition, survey or treaty information; return income Rs 48 lakhCorrect
  3. CAggregate variations of Rs 12 lakh; order not based on search or survey; return income Rs 20 lakh
  4. DAggregate variations of Rs 6 lakh; order not based on search or survey; return income Rs 55 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 above Rs 50 lakh. Only the second option meets all three. The first is search-based, the third exceeds Rs 10 lakh of variations, and the fourth exceeds Rs 50 lakh return income.

Did you get it right without looking?

One question tells you little. A timed set on Assessment Procedure including Dispute Resolution Process shows your real accuracy, how long you take and where you lose marks.

Practise Assessment Procedure including Dispute Resolution ProcessFree diagnostic mock

More Assessment Procedure including Dispute Resolution Process questions