Section 245OA of Income Tax Act, 1961
Section 245OA governed the qualifications, appointment, term of office, salaries and allowances, resignation, removal and other service conditions of the Chairman, Vice-Chairman and other Members of the Authority for Advance Rulings appointed after the commencement of the specified provisions of the Finance Act, 2017.
Meaning and scope of Section 245OA
Section 245OA began with a non-obstante clause. Accordingly, notwithstanding anything contained elsewhere in the Income-tax Act, specified service matters concerning the Chairman, Vice-Chairman and other Members appointed after commencement of Part XIV of Chapter VI of the Finance Act, 2017 were governed by Section 184 of the Finance Act, 2017.
Matters covered by Section 245OA
| Matter | Scope |
|---|---|
| Qualifications | Eligibility requirements for appointment to the relevant offices. |
| Appointment | The statutory framework governing appointment of the Chairman, Vice-Chairman and Members. |
| Term of office | The tenure applicable to the office held. |
| Salaries and allowances | Remuneration and allowances attached to the office. |
| Resignation and removal | The framework applicable to resignation from, and removal from, office. |
| Other service conditions | Other prescribed terms and conditions governing service. |
Link with Section 184 of Finance Act, 2017
The central effect of Section 245OA was to make Section 184 of the Finance Act, 2017 applicable to the specified appointment and service matters of the Chairman, Vice-Chairman and other Members appointed after the relevant commencement date.
Protection for earlier appointments
The proviso to Section 245OA preserved the earlier legal regime for a Chairman, Vice-Chairman or Member appointed before commencement of Part XIV of Chapter VI of the Finance Act, 2017. Such persons continued to be governed by the Income-tax Act and the rules made under it as if Section 184 of the Finance Act, 2017 had not come into force.
Why the appointment date matters
The statutory treatment depended on whether the appointment was made before or after the relevant commencement of the Finance Act, 2017 provisions. The main provision applied the Section 184 framework to later appointments, while the proviso preserved the earlier Income-tax Act and rules framework for existing appointees.
Section 245OA at a glance
| Category | Applicable framework under Section 245OA |
|---|---|
| Appointment after the specified Finance Act, 2017 commencement | Qualifications, appointment, tenure, salary and allowances, resignation, removal and other service conditions governed by Section 184 of the Finance Act, 2017. |
| Appointment before that commencement | Continued under the Income-tax Act and rules as if Section 184 of the Finance Act, 2017 had not come into force. |
Advance ruling framework after Finance Act, 2021
The Finance Act, 2021 replaced the earlier income-tax Authority for Advance Rulings structure with the Board for Advance Rulings framework. Section 245OB provides for constitution of Boards for Advance Rulings. Consequently, Section 245OA should be read in its historical and transitional context when dealing with the former Authority and its office-holders.
Position before Bharatiya Sakshya Adhiniyam, 2023
Section 245OA concerns institutional appointments and service conditions and does not itself prescribe rules of evidence. For any separate evidentiary issue arising before commencement of the Bharatiya Sakshya Adhiniyam, 2023, the evidentiary law applicable to that period would govern, while Section 245OA is interpreted within the Income-tax Act and the Finance Act, 2017 framework applicable to the relevant appointment.