Rule 197: Applying to the Dispute Resolution Committee in Form 119
Rule 197 sets out how a person applies to the Dispute Resolution Committee (DRC) under section 379. The application is made in Form No. 119, only by a person who opts for dispute resolution about a variation in a "specified order" and who fulfils the "specified conditions", and it must carry a fee of ₹1000. Both quoted terms are defined in Rule 199.
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Bare law
Rule 197 - Application for resolution of dispute before the Dispute Resolution Committee under section 379
(1) An application to the Dispute Resolution Committee shall be made in Form No. 119 by the person, who opts for dispute resolution under section 379 in respect of dispute arising from any variation in the specified order in his case and who fulfils the specified conditions.
(2) Every application in connection with resolution of dispute shall be accompanied by a fee of ₹ 1000.
Rule breakdown
What the rule does
Rule 197 is the application rule for the DRC route under section 379. It fixes three things: the form (Form No. 119), who may file (a person who opts for dispute resolution about a variation in the specified order in his case and who fulfils the specified conditions), and the fee (₹1000 for every application in connection with resolution of dispute).
The Committee itself is constituted under Rule 196. The DRC's power to reduce or waive penalty or grant immunity is in Rule 198. The meanings of "specified order" and "specified conditions" are in Rule 199.
Who can apply and who cannot
Eligibility depends on two separate tests. First, the dispute must arise from a variation in a "specified order" as defined in Rule 199(a), which covers listed draft orders, intimations, assessment or reassessment orders and certain orders with an aggregate variation of not more than ten lakh rupees and returned income of not more than fifty lakh rupees, and excludes orders based on search, requisition, survey or information received under a section 159 agreement.
Second, the applicant must fulfil the "specified conditions" in Rule 199(b), which exclude, among others, certain persons subject to COFEPOSA detention orders, persons convicted under listed Acts, persons prosecuted by an income-tax authority, persons notified under the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 and persons facing Black Money Act proceedings for the relevant tax year. Read Rule 199 in full rather than relying on this summary.
Section 379(1) also refers to such persons or class of persons as specified by the Board. Check any Board specification and the current DRC scheme before assuming the route is open.
Steps to file
Confirm that the order you dispute is a specified order under Rule 199(a) and that you meet every specified condition under Rule 199(b).
Make the application in Form No. 119; Rule 197(2) requires it to be accompanied by a fee of ₹1000.
Rule 197 does not itself state a time limit or the filing channel. Check the applicable scheme and the Form for those details before filing.
Key takeaways
Form No. 119
The DRC application is made in Form No. 119.
Fee ₹1000
Every application in connection with resolution of dispute carries a fee of ₹1000.
Eligibility is defined elsewhere
"Specified order" and "specified conditions" are defined in Rule 199.
Practical checklist
- Check the order against each limb of the Rule 199(a) definition, including the ten lakh and fifty lakh rupee limits where they apply.
- Check every Rule 199(b) condition for the applicant.
- Ensure the application is accompanied by the fee of ₹1000 (Rule 197(2)).
Avoid
- Do not apply for an order based on search, requisition, survey or treaty information where Rule 199(a) excludes it.
FAQs
Which form is used to apply to the Dispute Resolution Committee?
Form No. 119, under Rule 197(1).
What fee is payable?
Rule 197(2) requires every application in connection with resolution of dispute to be accompanied by a fee of ₹1000.
Can any taxpayer with an assessment dispute apply?
No. The dispute must arise from a variation in a specified order and the applicant must fulfil the specified conditions, both defined in Rule 199.
Does Rule 197 give a deadline for filing?
No time limit is stated in Rule 197. Check the applicable scheme, Form No. 119 and the relevant notices for timing.
Glossary
- Dispute Resolution Committee
- The committee constituted under section 379 and Rule 196 for each region of Principal Chief Commissioner of Income-tax.
- Specified order
- An order of the kind listed in Rule 199(a).
- Specified conditions
- The applicant conditions listed in Rule 199(b).