Section 379 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 379 of the Income-tax Act, 2025 lets the Central Government set up Dispute Resolution Committees to settle certain tax disputes at an early stage. It defines the "specified order" that qualifies, lists the powers of the Committee, and tells the Assessing Officer how to give effect to its order. This article reads the section as per the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026.
The Central Government constitutes one or more Dispute Resolution Committees for persons or classes of persons specified by the Board who opt for dispute resolution on a variation in a specified order. A specified order is one where the aggregate variations do not exceed ten lakh rupees, which is not based on search, requisition, survey or treaty information, and where, if a return was filed, the total income per the return does not exceed fifty lakh rupees. The Committee may modify the variations, reduce or waive penalty and grant immunity from prosecution. The Assessing Officer gives effect to its order within one month from the end of the month of receipt. The words "waive any penalty imposed or imposable" were substituted by the Finance Act, 2026.
Where this section sits
Section 379 is the only section of part D.1 of Chapter XVIII, "Dispute Resolution Committee in certain cases". Part D.2 on advance rulings follows: see sections 380 to 384. The Chapter is summarised in the Chapter XVIII guide. Revision by the assessee is dealt with in section 378. Later amendments, rules and notifications should be checked.
If you have received an order and want to compare the routes open to you, see our page on legal dispute resolution.
Section 379(1): constitution and who may opt
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 the Board specifies, who:
- opt for dispute resolution under this Chapter in respect of a dispute arising from any variation in the specified order in their case; and
- fulfil the specified conditions, as may be prescribed.
The Act does not itself name the persons or classes. The Board specifies them, and the conditions and the rules are prescribed. What has been specified is not in the text consulted; the detail is left to the Income-tax Rules, 2026.
Section 379(2): powers of the Committee
Subject to the prescribed conditions, the Committee may:
| Power | Wording |
|---|---|
| Modify | Make modifications to the variations in the specified order |
| Penalty | Reduce or waive any penalty imposed or imposable under the Act |
| Prosecution | Grant immunity from prosecution for any offence punishable under the Act |
The powers are exercisable in the case of a person whose dispute is resolved under this Chapter. In the copy consulted, the words "waive any penalty imposed or imposable" are printed in square brackets with a footnote: they were substituted for "waive any penalty imposable" by the Finance Act, 2026 with effect from 1 April 2026. The Act's text now covers a penalty already imposed as well as one that may be imposed.
Section 379(3): effect of the Committee's order
Irrespective of section 275, on receipt of the order of the Dispute Resolution Committee, the Assessing Officer shall, in conformity with the directions in the order and within one month from the end of the month in which the order is received:
- (a) 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.
Section 379(4): what is a "specified order"
"Specified order" means such order, including draft order, as specified by the Board, and:
| Clause | Condition |
|---|---|
| (i) | The aggregate sum of variations proposed or made in such order does not exceed ten lakh rupees |
| (ii) | The order is not based on search initiated under section 247, or requisition under section 248, in the case of the 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 the order, total income as per such return does not exceed fifty lakh rupees |
All three conditions are joined with "and" and must be met, and the order must also be one specified by the Board. For search and survey, see our posts on section 247 (search and seizure) and section 253 (survey); for the agreement in section 159, see section 159.
Clause (iii) applies only where a return has been filed. The text does not state a separate limit for an assessee who has not filed a return.
Worked example
Meenakshi Packaging Private Limited (an invented name) has filed a return showing total income of Rs. 32,00,000. The Assessing Officer proposes variations in a draft order of assessment: Rs. 4,00,000 of disallowance and Rs. 3,50,000 of an addition. The aggregate of variations is Rs. 4,00,000 + Rs. 3,50,000 = Rs. 7,50,000, which does not exceed ten lakh rupees (clause (i)). The order is not based on a search, requisition, survey or treaty information (clause (ii)). Total income as per the return, Rs. 32,00,000, does not exceed fifty lakh rupees (clause (iii)). If the Board has specified this kind of order, and the company is within a class the Board has specified and meets the prescribed conditions, it may opt for dispute resolution.
The Committee modifies the variations. Since the order was a draft under section 275(1), the Assessing Officer must, within one month from the end of the month in which the Committee's order is received, pass the order of assessment in conformity with its directions (section 379(3)(a)). If the Committee's order is received on 12 August, the end of the month is 31 August and the one month runs to 30 September.
If the same company's aggregate variation had been Rs. 12,00,000, it would exceed ten lakh rupees and the order would not be a specified order under clause (i).
Need help deciding between dispute routes?
If you have received a draft order or an assessment order and want to compare a Dispute Resolution Committee, an appeal and other routes, our team can help you look at the limits in section 379. Please contact us through the page for legal dispute resolution.
Key takeaways
- The Government constitutes Committees; the Board specifies the persons and the orders; the Rules prescribe the conditions.
- A specified order has aggregate variations not above ten lakh rupees and, where a return is filed, total income per the return not above fifty lakh rupees.
- Orders based on search, requisition, survey or treaty information are excluded.
- The Committee may modify variations, reduce or waive penalty imposed or imposable, and grant immunity from prosecution.
- The Assessing Officer acts within one month from the end of the month of receipt of the Committee's order.
Read next
- Sections 380 to 384: advance rulings
- Sections 375 and 376: avoiding repetitive appeals
- Section 378: revision of other orders
- Chapter XVIII guide
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.