Section 384 — Procedure on receipt of application
Old Act equivalent: Section 245R of IT Act 1961 Sub-part: D.2—Advance rulings
Statutory Text
- (1) On receipt of an application, the Board for Advance Rulings shall forward a copy thereof to the Principal Commissioner or Commissioner and, call upon him to furnish the relevant records, which shall be returned at the earliest opportunity. (2) The Board for Advance Rulings may, after examining the application and the records called for either allow or reject the application by an order. (3) For the purposes of sub-section (2), an application shall be rejected if the question raised therein—
(a) is already pending before any income-tax authority or Appellate Tribunal except in the case of a resident applicant falling under section 380(b)(iii) or any court;
(b) involves determination of fair market value of any property;
(c) relates to a transaction or issue which is designed prima facie for the avoidance of income-tax except in the case of a resident applicant falling in section 380(b)(iii) or in the case of an applicant falling under section 380(b)(iv). (4) The application shall not be rejected under sub-section (2), unless an opportunity of being heard has been given to the applicant and the reasons for such rejection are given in the order. (5) A copy of every order made under sub-section (2) shall be sent to the applicant and to the Principal Commissioner or Commissioner. (6) Where an application is allowed under sub-section (2), the Board for Advance Rulings shall, after examining such further material as may be placed before it by the applicant or obtained by the Board for Advance Rulings, pronounce its advance ruling in writing, on the question specified in the application within six months of the receipt of application. (7) On a request from the applicant, the Board for Advance Rulings shall, before pronouncing its advance ruling, provide an opportunity of being heard to the applicant, either in person or through a duly authorised representative. (8) A copy of the advance ruling pronounced by the Board for Advance Rulings, duly signed by the Members and certified in such manner, as may be prescribed
shall be sent to the applicant and to the Principal Commissioner or Commissioner, as soon as may be, after such pronouncement. (9) For the purposes of this section, “authorised representative” shall have the meaning assigned to it in section 515(3)(a), as if the applicant were an assessee. Appellate authority not to proceed in certain cases.
Provisos
None.
Explanations
None.
Tables
None.
Key Structure
- Applies to: Board for Advance Rulings processing applications.
- Conditions: Copy forwarded to PCIT/CIT; application may be allowed or rejected; rejection grounds: question already pending (except resident s.380(b)(iii)), FMV determination, tax avoidance design (with exceptions).
- Time limits: Ruling to be pronounced within 6 months of receipt of application.
- Monetary limits: None.
- Exceptions: Rejection requires opportunity of hearing and recorded reasons. Resident applicants under s.380(b)(iii) or (iv) have relaxed rejection criteria.
Cross-References
- Section 380
- Section 515
Amendment Notes
None noted from the extracted pages.