Rule 199: Definitions for the Dispute Resolution Committee rules
Rule 199 defines three terms used for Rules 196 to 198: "specified order", "specified conditions" and "specified person". Together they decide which orders can go to the Dispute Resolution Committee and which persons can use that route.
Official notified Income-tax Rules, 2026Need advice on Rule 199?
This article is for general information. Read the official Rules and applicable Act amendments, including the Taxation and Other Laws (Amendment) Act, 2026. If you need professional advice for your situation, contact Bizeneed.
On this page
Bare law
Rule 199 - Definitions
For the purposes of rules 196 to 198,— (a) "specified order" in relation to a dispute under section 379 means, — (i) a draft order as referred to in section 275 (1); or (ii) an intimation under section 270(1) or section 399(1), where the assessee or the deductor or the collector objects to the adjustments made in the said order; or (iii) an order of assessment or reassessment, except an order passed in pursuance of directions of the Dispute Resolution Panel; or (iv) an order made under section 287 having the effect of enhancing the assessment or reducing the loss; or (v) an order made under section 398 and in respect of which the following conditions are satisfied:— (A) the aggregate sum of variations proposed or made in such order does not exceed ten lakh rupees and for such purposes, the variation shall refer to the amount on which tax has not been deducted or collected; (B) the return has been furnished by the assessee for the tax year relevant to such order and the total income as per such return does not exceed fifty lakh rupees; and (C) the order in the case of the assessee is not based on — (a) a search initiated under section 247 or requisition made under section 248 in the case of the assessee or any other person; or (b) survey carried out under section 253; or (c) information received under an agreement referred to in section 159 ;
(b) the "specified conditions" in relation to an applicant under section 379 means, — (A) where he is not a person in respect of whom an order of detention has been made under the provisions of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (52 of 1974) and when — (I) such order of detention, on which the provisions of section 9 or section 12A of the said Act do not apply, has been revoked on the report of the Advisory Board under section 8 of the said Act or before the receipt of the report of the Advisory Board; or (II) such order of detention on which the provisions of section 9 of the said Act apply, has not been revoked before the expiry of the time for, or on the basis of, the review under section 9(3), or on the report of the Advisory Board under section 8, read with section 9(2), of the said Act; or (III) such order of detention, on which the provisions of section 12A of the said Act apply, has not been revoked before the expiry of the time for, or on the basis of, the first review under sub-section (3) of the said section, or on the basis of the report of the Advisory Board under section 8, read with section 12A(6) of the said Act; or (IV) such order of detention has not been set aside by a court of competent jurisdiction; or (B) where he is not a person in respect of whom prosecution for any offence punishable under the provisions of the Bharatiya Nyaya Sanhita, 2023 (45 of 2023) or the Unlawful Activities (Prevention) Act, 1967 (37 of 1967) or the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985) or the Prohibition of Benami Transactions Act, 1988 (45 of 1988) or the Prevention of Corruption Act, 1988 (49 of 1988) or the Prevention of Money-laundering Act, 2002 (15 of 2003) has been instituted and he has been convicted of any offence punishable under any of those Acts; or (C) where he is not a person in respect of whom prosecution has been initiated by an income-tax authority for any offence punishable under the provisions of the Act or the Bharatiya Nyaya Sanhita, 2023 (45 of 2023) or for the purpose of enforcement of any civil liability under any law for the time being in force, or such person has been convicted of any such offence consequent upon the prosecution initiated by an income-tax authority; or (D) where he is not a person who is notified under section 3 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 (27 of 1992); or (E) where he is not a person in respect of whom proceedings under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015) have been initiated for the tax year for which resolution of dispute is sought;
(c) "specified person" for the purposes of section 379 of the Act shall be a person who fulfils the specified conditions.
Rule breakdown
Specified order — Rule 199(a)
A specified order is: (i) a draft order referred to in section 275(1); (ii) an intimation under section 270(1) or section 399(1) where the assessee, deductor or collector objects to the adjustments; (iii) an assessment or reassessment order, except one passed in pursuance of Dispute Resolution Panel directions; (iv) an order under section 287 that enhances the assessment or reduces the loss; or (v) an order under section 398 meeting conditions (A) to (C).
Conditions (A) to (C), as printed, are: aggregate variations not exceeding ten lakh rupees (with "variation" referring to the amount on which tax has not been deducted or collected); a return furnished for the relevant tax year with total income not exceeding fifty lakh rupees; and the order not being based on search or requisition, survey, or information received under a section 159 agreement.
In the printed text these three conditions appear inside item (v). Section 379(4) of the Act separately contains a ten lakh variation limit, a fifty lakh returned-income limit and the search/survey/treaty exclusion for specified orders. Read the rule together with section 379(4) rather than assuming the limits apply only to item (v).
Specified conditions — Rule 199(b)
The applicant must not fall in any of the listed categories: (A) a person subject to a COFEPOSA detention order, read with the revocation and review exceptions printed in (I) to (IV); (B) a person prosecuted and convicted under the listed Acts (Bharatiya Nyaya Sanhita, 2023; UAPA; NDPS Act; Benami Act; Prevention of Corruption Act; PMLA); (C) a person prosecuted by an income-tax authority under the Act or the Bharatiya Nyaya Sanhita, 2023, or for enforcement of civil liability, or convicted on such prosecution; (D) a person notified under section 3 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992; or (E) a person against whom Black Money Act proceedings were initiated for the tax year concerned.
The printed text links (A) to (E) with "or" and frames each as "where he is not a person". This draft does not resolve how those connectors are to be read; apply each exclusion carefully and obtain advice in borderline cases.
Specified person — Rule 199(c)
A specified person for section 379 is a person who fulfils the specified conditions.
How to use these definitions
Identify the order type and test it against Rule 199(a) and section 379(4).
Test the applicant against each category in Rule 199(b).
Only then proceed to Form No. 119 under Rule 197.
Key takeaways
Order test
Rule 199(a) lists the orders that can be specified orders.
Person test
Rule 199(b) lists the categories that disqualify an applicant.
Scope
The definitions apply for Rules 196 to 198.
Practical checklist
- Read section 379(4) of the Act together with Rule 199(a).
- Check the tax year specifically for Black Money Act proceedings.
Avoid
- Do not treat an intimation as a specified order unless the adjustments in it are objected to.
- Do not rely on summaries of the detention exceptions; read (I) to (IV) as printed.
FAQs
Is an order based on a search a specified order?
The section 398 limb in Rule 199(a)(v) excludes orders based on search, requisition, survey or section 159 agreement information, and section 379(4)(ii) of the Act contains a similar exclusion for specified orders.
Is an order passed on Dispute Resolution Panel directions covered?
Rule 199(a)(iii) excludes an order of assessment or reassessment passed in pursuance of Dispute Resolution Panel directions.
What do "specified conditions" cover?
The detention, conviction, prosecution, special-court notification and Black Money Act categories listed in Rule 199(b)(A) to (E).
Who is a specified person?
Under Rule 199(c), a person who fulfils the specified conditions.
Glossary
- Variation
- For Rule 199(a)(v)(A), the amount on which tax has not been deducted or collected.
- COFEPOSA
- The Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974.
- Specified person
- A person who fulfils the specified conditions.