Dispute Resolution Committee
[Section-379 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 379(1) of Income Tax Act 2025
379(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 prescribed.
Section 379(2) of Income Tax Act 2025
379(2) The Dispute Resolution Committee, subject to the conditions as prescribed, may make modifications to the variations in specified order or reduce or waive any penalty 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.
Section 379(3) of Income Tax Act 2025
379(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.
Section 379(4) of Income Tax Act 2025
379(4) “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); and
- (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.
FAQs on Section 379 of Income Tax Act 2025
What is the purpose of the Dispute Resolution Committee (DRC) under Section 379(1)?
The DRC is constituted by the Central Government for resolving disputes arising from variations in specified orders for eligible persons or classes of persons, as notified by the Board, who opt for resolution under this Chapter and meet the prescribed conditions.
Who can approach the Dispute Resolution Committee?
Only persons or classes of persons specified by the Board who opt for dispute resolution in relation to a variation in a specified order and fulfill the prescribed eligibility conditions can approach the DRC.
What powers does the Dispute Resolution Committee have under Section 379(2)?
The DRC may modify variations in a specified order, reduce or waive penalties imposable under the Act, or grant immunity from prosecution for offences punishable under the Act, subject to prescribed conditions.
Can the Dispute Resolution Committee grant immunity from prosecution?
Yes, under Section 379(2), the DRC has the authority to grant immunity from prosecution in cases where the dispute is resolved under this Chapter, subject to prescribed conditions.
What is the role of the Assessing Officer after the DRC passes an order?
Under Section 379(3), the Assessing Officer must, within one month from the end of the month in which the DRC’s order is received:
(a) Pass an order of assessment, reassessment, or recomputation if the specified order was a draft under Section 275(1); or
(b) Modify the existing order of assessment, reassessment, or recomputation in all other cases, as per the directions of the DRC.
What is meant by a “specified order” under Section 379(4)?
A “specified order” is an order, including a draft order, as specified by the Board, where:
(i) The total variation proposed or made does not exceed ₹10 lakh;
(ii) It is not based on search (Section 247), requisition (Section 248), survey (Section 253), or information under international agreement (Section 159); and
(iii) The assessee has filed a return for the relevant tax year and total income as per the return does not exceed ₹50 lakh.
Can cases arising from search, requisition, or survey be resolved through the DRC?
No, cases based on search under Section 247, requisition under Section 248, or survey under Section 253 are specifically excluded from the scope of DRC under Section 379(4)(ii).
Is there a monetary limit on variations for cases to be eligible under the DRC?
Yes, as per Section 379(4)(i), the aggregate sum of variations proposed or made in the specified order must not exceed ₹10 lakh.
What income limit applies to an assessee for availing DRC resolution?
The total income reported in the return filed for the relevant tax year must not exceed ₹50 lakh as per Section 379(4)(iii).
Does the DRC mechanism override Section 275 relating to time limits for assessment orders?
Yes, Section 379(3) specifically overrides Section 275, requiring the Assessing Officer to act upon the DRC’s order within one month from the end of the month in which it is received.
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