Mr. Vivek furnished his return of income for A.Y.2025-26 declaring total income of 28,00,000. He received an assessment order under section 143(3)…
CA Final · Direct Tax Laws and International Taxation · MTP · May 2026
Mr. Vivek furnished his return of income for A.Y.2025-26 declaring total income of 28,00,000. He received an assessment order under section 143(3) on 26.11.2026 enhancing the total income for the A.Y.2025-26 by - 5,00,000. He is aggrieved by the said order and is desirous of knowing whether he can file an application before the Dispute Resolution Committee (DRC). He informs you that no order of detention has been made and no prosecution proceedings have been initiated or instituted against him under any law for the time being in force. However, penalty under section 271D has been levied on him for failure to comply with the provisions of section 269SS. Can Mr. Vivek file an application before the DRC? (I) If yes, what is the time limit for making an application to DRC against such order under the Income-tax Act, 1961. He is also keen to know, whether, in case he is aggrieved by the order passed by the DRC, can he file appeal against such order of DRC? (II) Would your answer be different, if assessment order is based on information received under a DTAA with Country M?
Suggested Answer and Working Notes:
Dispute Resolution Committee (DRC) would resolve dispute in the case of a person who opts for dispute resolution under Chapter XIX-AA in respect of dispute arising from any variation in the specified order in his case and who fulfils the specified conditions. Specified order includes an assessment order passed under section 143 (3) , where the aggregate sum of variations made vide such order does not exceed 10lakh; the total income as per such return furnished by the assessee for the assessment year relevant to such order does not exceed 50lakhs and such order is not based on search or requisition or survey or any information received under a DTAA. Accordingly, in the present case, Mr. Vivek can file an application before DRC, since the assessment order received on 26.11.2026 is a specified order and he satisfies the specified conditions on account of no order of detention being made and no prosecution proceedings being initiated or instituted against him. Non-levy of penalty under income-tax law is not a specified condition, therefore, the levy of penalty under section 271D on him does not result in non-compliance with the specified condition. Mr. Vivek has to file an application for resolution of dispute in the prescribed form on or before 25.12.2026 i.e., within one month from the date of receipt of the specified order. However, once a modified order is passed by the DRC, no appeal or revision would lie against such order. If assessment order is based upon the information received under a DTAA entered with India, Mr. Vivek, will not be eligible to make an application before DRC, since it is not a specified order.
Topics: Dispute Resolution
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