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Chapter XVIII - Appeals, Revisions and Alternate Dispute Resolutions

Section 379

Section 379: Dispute Resolution Committee in certain cases

Section 379 provides an alternate dispute resolution route for eligible, smaller taxpayers: the Central Government constitutes one or more Dispute Resolution Committees that can modify a variation in a specified order, reduce or waive a penalty, or grant immunity from prosecution, for a person who opts in and meets the prescribed conditions.

Official text
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Statutory text

Bare law

(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 variation 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 prescribed, 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, reassessment or recomputation; or (b) in any other case, modify the order of assessment, reassessment or recomputation, 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 requisition 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.

Introduction

The Dispute Resolution Committee is an opt-in route for persons or classes specified by the Board who meet the prescribed conditions. It addresses a variation in a specified order, including an eligible draft order.

Eligibility is narrower than the monetary limits alone: the order must be Board-specified, the proposed or made variation must not exceed ₹10 lakh, specified search, requisition, survey and treaty-information cases are excluded, and filed-return income must meet the ₹50 lakh limit.

Key takeaways

1

Opt-in committee

The Dispute Resolution Committee route is for Board-specified persons who opt in and meet prescribed conditions.

2

Limited specified order

The provision defines a specified order using a proposed-variation ceiling and exclusions for certain search, survey and information-based cases.

3

Effect of decision

The Assessing Officer must pass or modify the assessment in conformity with the committee’s order within the stated month-based period.

Constitution of the Committee and who can use it

The Central Government constitutes one or more Dispute Resolution Committees, as per the rules made under the Act, for dispute resolution for such persons or class of persons as the Board specifies, who opt for dispute resolution under this Chapter for a dispute arising from a variation in the "specified order" in their case, and who fulfil the prescribed conditions.

What the Committee can do

Subject to prescribed conditions, the Dispute Resolution Committee may modify the variations in a specified order, reduce or waive a penalty imposed or imposable under the Act, or grant immunity from prosecution for any offence punishable under the Act, for a person whose dispute is resolved through this route.

Giving effect to the Committee's order

Irrespective of section 275, on receiving the Committee's order, the Assessing Officer must: pass an assessment, reassessment or recomputation order, where the specified order was a draft proposed order under section 275(1); or, in any other case, modify the assessment, reassessment or recomputation order in conformity with the Committee's directions, within one month from the end of the month in which the Committee's order is received.

What counts as a 'specified order'

"Specified order" means an order (including a draft order) specified by the Board, where:

  • The aggregate sum of variations proposed or made in the order does not exceed ₹10,00,000
  • The order is not based on a search under section 247, or requisition under section 248, in the case of the assessee or any other person, nor on a survey under section 253, nor on information received under an agreement referred to in section 159(1) or (2)
  • Where the assessee has filed a return for the relevant tax year, the total income as per that return does not exceed ₹50,00,000

Step-by-step flow for the Dispute Resolution Committee under Section 379

  1. 1

    Is the person (or class of persons) specified by the Board, and does the person fulfil the prescribed conditions and opt for dispute resolution?

    Section 379(1) leaves the class of persons to the Board, and the conditions and the constitution of the Committees to rules.

    • No: The Dispute Resolution Committee route is not available.
    • Yes: Go to the next step.
  2. 2

    Is the dispute about variations in a "specified order"?

    Under Section 379(4), the order (including a draft order) must be specified by the Board and: (i) the aggregate variations proposed or made must not exceed ten lakh rupees; (ii) it must not be based on a search under section 247, a requisition under section 248, a survey under section 253, or information received under an agreement referred to in section 159(1) or (2); (iii) if a return was filed for that tax year, the returned total income must not exceed fifty lakh rupees.

    • No: The order is not a specified order; the Committee route is not available.
    • Yes: Go to the next step.
  3. 3

    What can the Committee do?

    Subject to prescribed conditions, it may modify the variations, reduce or waive any penalty imposed or imposable, or grant immunity from prosecution for an offence under the Act (Section 379(2)).

  4. 4

    Is the specified order a draft of the proposed assessment order under section 275(1)?

    After receiving the Committee's order, the Assessing Officer acts in conformity with its directions within one month from the end of the month in which the order is received (Section 379(3)).

    • Yes: The Assessing Officer passes the order of assessment, reassessment or recomputation.
    • No: The Assessing Officer modifies the existing order of assessment, reassessment or recomputation.

Practical checklist

Do

  • Confirm the Board has specified the relevant class of person and order, and check the rules for the opt-in process.
  • Calculate the aggregate variation and check the return’s total income against the statutory ceilings.
  • Identify whether the order relies on an excluded search, requisition, survey or section 159 information source.
  • After a committee order, check the Assessing Officer’s conformity order against the one-month-from-month-end period.

Avoid

  • Do not infer eligibility solely because the disputed amount is below ₹10 lakh.
  • Do not treat penalty relief or prosecution immunity as automatic; the committee may grant it subject to prescribed conditions.

Illustrative example

Worked example: a small draft-order dispute

Hypothetical facts (illustration only, not a real taxpayer): A shopkeeper, assumed to fall within a class specified by the Board and to meet the prescribed conditions, gets a draft assessment order under section 275(1). It proposes two additions: ₹4,00,000 and ₹3,50,000. His return shows total income of ₹32,00,000. The order is not based on any search, requisition, survey or information under an agreement referred to in section 159. He opts for dispute resolution. The Assessing Officer receives the Committee's order on 18 November 2027. All amounts and dates are assumed.

  1. Variations limit

    Aggregate variations = ₹4,00,000 + ₹3,50,000 = ₹7,50,000. This does not exceed ₹10,00,000 (ten lakh rupees).

  2. Returned income limit

    Returned total income of ₹32,00,000 does not exceed ₹50,00,000 (fifty lakh rupees).

  3. Other conditions

    The order is not based on search, requisition, survey or information under section 159(1) or (2), and it is assumed to be an order specified by the Board. So it is a specified order.

  4. Committee's order

    Subject to the prescribed conditions, the Committee may modify the variations and may reduce or waive penalty or grant immunity from prosecution.

  5. Assessing Officer's deadline

    The order was received in November 2027. One month from the end of November is 31 December 2027, so the assessment order must be passed by then.

Outcome

  • The case qualifies for the Dispute Resolution Committee on the assumed facts.
  • If the additions had totalled more than ₹10,00,000, or returned income had exceeded ₹50,00,000, the order would not be a specified order.

Glossary

Specified order
A Board-specified order or draft order that also meets the limits and exclusions in subsection (4).
Variation
The proposed or made change in the specified order that gives rise to the dispute.

Frequently asked questions

What can a Dispute Resolution Committee actually do for me?

It can modify the variations in your specified order, reduce or waive a penalty imposed or imposable under the Act, or grant immunity from prosecution for an offence under the Act, subject to prescribed conditions.

Is there a monetary limit to use the Dispute Resolution Committee route under Section 379?

Yes - the aggregate sum of variations proposed or made in the specified order cannot exceed ₹10,00,000, and if you have filed a return for the relevant year, your total returned income cannot exceed ₹50,00,000.

Can a case based on a search or survey go to the Dispute Resolution Committee?

No - Section 379(4)(ii) excludes an order based on a search under section 247, a requisition under section 248, a survey under section 253, or information received under an agreement referred to in section 159(1) or (2).

Related sections

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Last updated 9 October 2026

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