What is the meaning of Vacancies, etc., not to invalidate proceedings? How to file Application for advance ruling? What is Procedure on receipt of application? Section 245P, 245Q and 245R of Income Tax Act 1961

Vacancies, etc., not to invalidate proceedings, Application for advance ruling and Procedure on receipt of application are defined under section 245P, 245Q and 245R of Income Tax Act 1961. Provisions under these Sections are:

Section 245P of Income Tax Act "Vacancies, etc., not to invalidate proceedings"

Section 245P. No proceeding before, or pronouncement of advance ruling by, the Authority shall be questioned or shall be invalid on the ground merely of the existence of any vacancy or defect in the constitution of the Authority.

Section 245Q of Income Tax Act "Vacancies, etc., not to invalidate proceedings"

Section 245Q. (1) An applicant desirous of obtaining an advance ruling under this Chapter may make an application in such form and in such manner as may be prescribed15, stating the question on which the advance ruling is sought.

(2) The application shall be made in quadruplicate and be accompanied by a fee of ten thousand rupees or such fee as may be prescribed16 in this behalf, whichever is higher.

(3) An applicant may withdraw an application within thirty days from the date of the application.

 

Section 245R of Income Tax Act "Procedure on receipt of application"

Section 245R. (1) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the 17[Principal Commissioner or] Commissioner and, if necessary, call upon him to furnish the relevant records :

Provided that where any records have been called for by the Authority in any case, such records shall, as soon as possible, be returned to the 18[Principal Commissioner or] Commissioner.

(2) The Authority may, after examining the application and the records called for, by order, either allow or reject the application :

Provided that the Authority shall not allow the application where the question raised in the application,-

(i) is already pending before any income-tax authority or Appellate Tribunal [except in the case of a resident applicant falling in sub-clause (iii) of clause (b) of section 245N] or any court;

(ii) involves determination of fair market value of any property;

(iii) 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 sub-clause (iii) of clause (b) of section 245N [or in the case of an applicant falling in sub-clause (iiia) of clause (b) of section 245N]:

Provided further that no application shall be rejected under this sub-section unless an opportunity has been given to the applicant of being heard:

Provided also that where the application is rejected, reasons for such rejection shall be given in the order.

(3) A copy of every order made under sub-section (2) shall be sent to the applicant and to the [Principal Commissioner or] Commissioner.

(4) Where an application is allowed under sub-section (2), the Authority shall, after examining such further material as may be placed before it by the applicant or obtained by the Authority, pronounce its advance ruling on the question specified in the application.

(5) On a request received from the applicant, the Authority shall, before pronouncing its advance ruling, provide an opportunity to the applicant of being heard, either in person or through a duly authorised representative.

Explanation.-For the purposes of this sub-section, "authorised representative" shall have the meaning assigned to it in sub-section (2) of section 288, as if the applicant were an assessee.

(6) The Authority shall pronounce its advance ruling in writing within six months of the receipt of application.

(7) A copy of the advance ruling pronounced by the Authority, duly signed by the Members and certified in the prescribed manner22 shall be sent to the applicant and to the [Principal Commissioner or] Commissioner, as soon as may be, after such pronouncement.

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