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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, which condition must a specified order satisfy for a person to opt for dispute resolution before the Dispute Resolution Committee?

The aggregate variations proposed or made must not exceed ten lakh rupees. Section 379(4) also excludes orders based on search, requisition, survey or treaty information, and caps the returned total income at fifty lakh rupees, so the other conditions listed are wrong.

  1. AThe aggregate sum of variations proposed or made does not exceed ten lakh rupeesCorrect
  2. BThe order must be based on a search initiated under section 247
  3. CThe return shows total income not exceeding one crore rupees
  4. DThe order must be based on information received under an agreement referred to in section 159

Explanation

Section 379(4) requires aggregate variations not exceeding ten lakh rupees, the order not being based on search, requisition, survey or information under an agreement, and, where a return is filed, total income not exceeding fifty lakh rupees. Search-based orders are excluded, and the income cap is fifty lakh, not one crore.

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