INCOME TAX ACT, 1961

Section 245Q

Advance ruling - Maintainability - Questions raised not already pending before IT Authorities -

Assessee filed application for advance ruling under section 245Q. Revenue submitted that the application may not be admitted under clause (i) of proviso to section 245R(2) for the reason that the questions raised in the application was already pending before the Income Tax Authority in the assessment proceeding for the assessment year 2018-19. Held: It was found that notice under section 143(2) was issued on 23-9-2019, in this case for the assessment year 2018-19, whereas the present application was filed much before i.e. on 29-3-2019. In the case of Mitsubishi Corporation, Japan, In re* (2013) 40 taxmann.com 335 (AAR - New Delhi) : 2014 TaxPub(DT) 1641 (AAR) i.e. it was held that the question raised in advance ruling application will be considered as pending for adjudication before Income-tax Authorities, only when issues are shown in return and notice under section 143(2) is issued and, thus, an application for advance ruling is to be admitted which is filed prior to issue of notice under section 143(2). In the present case also, the application for advance ruling was filed prior to the issue of notice under section 143(2). Therefore, the questions raised by the assessee in the present case were not already pending before the Income-tax Authorities and clause (i) of proviso to section 245R(2) was not found attracted.

Followed:In re, Mitsubishi Corporation, Japan (2013) 40 Taxmann.com 335 (AAR-New Del) : 2014 TaxPub(DT) 1641 (AAR).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

INCOME TAX ACT, 1961

Section 245Q

SUBSCRIBE FOR FULL CONTENT