Rule 197 — Application for resolution of dispute before the Dispute Resolution Committee under section 379. Made under s.379 of the Income-tax Act, 2025.
Rule 197 gives effect to Section 379 of the Income-tax Act, 2025. A rule cannot go beyond the section it serves: where the two seem to differ, the section governs.
Sub-rule (1) prescribes Form No. 119 for an application to the Dispute Resolution Committee. It is made by the person who opts for dispute resolution under section 379 in respect of a dispute arising from any variation in the specified order in his case, and who fulfils the specified conditions.
Sub-rule (2) requires every application in connection with resolution of dispute to be accompanied by a fee of Rs. 1000.
Section 379 gives an eligible person the option of going to the Dispute Resolution Committee, but the Act does not prescribe how the option is exercised or what it costs. The rule supplies the form and a flat fee, and repeats in its own words the two gates the section sets — that the dispute must arise from a variation in the specified order in the applicant's case, and that he must fulfil the specified conditions.
| What | Figure | The condition on it | Where |
|---|---|---|---|
| Fee accompanying the application | Rs. 1000 | Every application in connection with resolution of dispute | Sub-rule (2) |
The fee is flat and does not scale with the amount in dispute, so the cost of the application is not a filter on its size; the filters are that the dispute must arise from a variation in the specified order in the applicant's own case and that he must fulfil the specified conditions, both of which come from section 379 and not from this rule. Because sub-rule (2) says every application in connection with resolution of dispute must be accompanied by the fee, the fee attaches to the application as filed and the rule provides no waiver.
An assessee receives a specified order containing a variation and, being within the specified conditions, chooses the Dispute Resolution Committee rather than an appeal. He files Form No. 119 accompanied by a fee of Rs. 1000. The fee is the same whether the variation is of Rs. 2 lakh or Rs. 20 lakh.
A reader meets it on receiving a specified order containing a variation, when deciding between an appeal and the Dispute Resolution Committee, and then in filing Form No. 119 with the fee.
An application to the Dispute Resolution Committee shall be made in Form No. 119
Every application in connection with resolution of dispute shall be accompanied by a fee of Rs. 1000.