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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, for which of the following can an order qualify as a 'specified order' for the Dispute Resolution Committee, assuming it is otherwise specified by the Board?

The order with Rs 9 lakh of variations, no search basis and returned income of Rs 48 lakh qualifies. Section 379(4) requires variations of up to Rs 10 lakh, no search or requisition basis, and returned income of up to Rs 50 lakh. Each other option fails one condition.

  1. AAn order with aggregate variations of Rs 9 lakh, not based on search, where the return showed total income of Rs 48 lakhCorrect
  2. BAn order with aggregate variations of Rs 9 lakh, based on a search initiated under section 247, where the return showed total income of Rs 20 lakh
  3. CAn order with aggregate variations of Rs 12 lakh, not based on search, where the return showed total income of Rs 30 lakh
  4. DAn order with aggregate variations of Rs 8 lakh, not based on search, where the return showed total income of Rs 55 lakh

Explanation

Section 379(4) requires aggregate variations not exceeding Rs 10 lakh, no search or requisition basis, and return income not exceeding Rs 50 lakh. Only the first option meets all three. The second is search-based, the third exceeds Rs 10 lakh of variations, and the fourth has return income above Rs 50 lakh.

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