The Tax Publishers2021 TaxPub(DT) 0661 (Del-AAR)

INCOME TAX ACT, 1961

Section 245Q

The power to decline to pronounce the advance ruling is inherent in the power to pronounce the advance ruling as specified under provisions of section 245R(4). It has to be kept into consideration that the provision of advance ruling is open to the applicant only and the Revenue cannot come before the authority. If the applicant, after admission of the application, does not wish to pursue the matter further and desires to withdraw the application; there is no necessity to examine the issue and pronounce the advance ruling on its merit in such an eventuality.

Advance ruling - Application being admitted - Assessee desired to withdraw application - Whether application could be withdrawn after admission

Assessee filed an application for advance ruling under section 245Q(1) and the said application was admitted. Thereafter, a letter was filed by the assessee with a request to grant permission to withdraw the instant advance ruling application. It was submitted that the contract in respect of which the application was filed, was nearing its completion and, therefore, the assessee desired to withdraw the application. Revenue submitted that once the application was admitted under section 245R(2), it was incumbent upon the authority to pronounce the ruling as required under the provisions of the Act. It was further submitted that since the application was admitted, withdrawal of the application by the applicant or rejection of the application by the authority was not contemplated under the provisions of law. Held: The power to decline to pronounce the advance ruling is inherent in the power to pronounce the advance ruling as specified under provisions of section 245R(4). It has to be kept into consideration that the provision of advance ruling is open to the applicant only and the Revenue cannot come before the authority. If the applicant, after admission of the application, does not wish to pursue the matter further and desires to withdraw the application; there is no necessity to examine the issue and pronounce the advance ruling on its merit in such an eventuality. Therefore, the contention of the Revenue that since the application was admitted, it could not be rejected in the proceeding under section 245R(4) was not acceptable. Accordingly, the authority for advance rulings, declined to pronounce the advance ruling in view of the request of the applicant not to pursue the matter further and to withdraw the instant application. Hence, the said application was dismissed as not pressed or withdrawn by the applicant.

REFERRED :

FAVOUR : Application dismissed as not pressed or withdrawn by applicant.

A.Y. :



IN THE AUTHORITY FOR ADVANCE RULINGS, NEW DELHI

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