New IT Act 2025 — Knowledge Bank

Dispute Resolution Committee

Section 379 — Dispute Resolution Committee

Old Act equivalent: Section 245MA of IT Act 1961 Sub-part: D.1—Dispute Resolution Committee in certain cases

Statutory Text

  1. (1) The Central Government shall constitute, one or more Dispute Resolution Committees, as per the rules made under this Act, for dispute resolution in the case of such persons or class of persons, as specified by the Board, who opt for dispute resolution under this Chapter in respect of dispute arising from any vari­ ation in the specified order in his case and who fulfils the specified conditions, as may be prescribed. (2) The Dispute Resolution Committee, subject to the conditions as may be pre­ scribed, may make modifications to the variations in specified order or reduce or [waive any penalty imposed or imposable] under this Act, or grant immunity from prosecution for any offence punishable under this Act, in case of a person whose dispute is resolved under this Chapter. (3) Irrespective of anything contained in section 275, upon receipt of the order of the Dispute Resolution Committee under this section, the Assessing Officer shall,—

(a) in a case where the specified order is a draft of the proposed order of assessment under section 275(1), pass an order of assessment, reassess­ ment or recomputation; or

(b) in any other case, modify the order of assessment, reassessment or rec­ omputation, in conformity with the directions contained in the order of the Dispute Resolution Committee within one month from the end of the month in which such order is received. (4) For the purposes of this section, “specified order” means such order, including draft order, as specified by the Board, and—

(i) the aggregate sum of variations proposed or made in such order does not exceed ten lakh rupees;

(ii) such order is not based on search initiated under section 247 or requi­ sition under section 248 in the case of assessee or any other person or survey under section 253 or information received under an agreement referred to in section 159(1) or (2);

(iii) where the assessee has filed a return for the tax year relevant to such order, total income as per such return does not exceed fifty lakh rupees. 2.—Advance rulings Interpretation.

Provisos

None.

Explanations

None.

Tables

None.

Key Structure

  • Applies to: Persons/class specified by Board who opt for DRC dispute resolution; specified order with variations not exceeding Rs. 10 lakh; returned income up to Rs. 50 lakh.
  • Conditions: Assessee must have filed return; aggregate variations in specified order up to Rs. 10 lakh; order not based on search/requisition/survey/international agreement information.
  • Time limits: AO to pass order in conformity with DRC directions within 1 month from end of month of receipt.
  • Monetary limits: Aggregate variations up to Rs. 10 lakh; returned income up to Rs. 50 lakh.
  • Exceptions: Cases based on search (s.247), requisition (s.248), survey (s.253), or information under international agreements (s.159) excluded. DRC may waive penalty and grant prosecution immunity.

Cross-References

Amendment Notes

None noted from the extracted pages.

Practical Notes

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