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

Under section 379 of the Income-tax Act, 2025, a person seeks resolution before a Dispute Resolution Committee. The aggregate variations in the specified order are ₹8 lakh, the order is not based on search, requisition, survey or treaty information, and the return filed shows total income of ₹56 lakh. What is the position regarding the specified order?

The order does not qualify as a specified order. Although variations of ₹8 lakh are within the ₹10 lakh limit and no search or survey is involved, total income per the return of ₹56 lakh exceeds the ₹50 lakh ceiling, and all conditions must be met together.

  1. AIt qualifies, because aggregate variations are below ₹10 lakh
  2. BIt does not qualify, because total income per the return exceeds ₹50 lakhCorrect
  3. CIt does not qualify, because the variations are below ₹10 lakh
  4. DIt qualifies, because no search or survey is involved

Explanation

Section 379(4) requires all conditions together: variations not above ₹10 lakh, not based on search, requisition, survey or treaty information, and, where a return is filed, total income per the return not above ₹50 lakh. Here ₹56 lakh breaches the third condition, so the order fails despite meeting the other two.

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