Sections 245U and 245V of Income Tax Act, 1961
Sections 245U and 245V form part of Chapter XIX-B relating to advance rulings. Section 245U deals with the statutory powers of the advance ruling authority, including specified powers of a civil court, while Section 245V historically empowered the Authority to regulate its own procedure.
Section 245U - Powers of the Authority
Section 245U(1) confers, for the exercise of advance ruling powers, all the powers of a civil court under the Code of Civil Procedure, 1908 that are referred to in Section 131 of the Income-tax Act.
Meaning of civil court powers under Section 131
Section 131 of the Income-tax Act confers specified powers corresponding to those of a civil court when trying a suit. These include powers relating to discovery and inspection, enforcing attendance, compelling production of books of account and other documents, and issuing commissions, subject to the Income-tax Act.
Section 245U(2) - Deemed civil court and judicial proceeding
For the legal position applicable before implementation of the new criminal law framework, Section 245U(2) provided that the Authority was deemed to be a civil court for the purposes of Section 195 of the Code of Criminal Procedure, 1973, but not for the purposes of Chapter XXVI of that Code.
It further treated every proceeding before the Authority as a judicial proceeding within the meaning of Sections 193 and 228, and for the purpose of Section 196, of the Indian Penal Code, 1860.
| Provision | Relevance under the pre-new-criminal-law framework |
|---|---|
| CrPC Section 195 | Regulated prosecution for specified offences relating to public justice and documents given in evidence, including the requirement of a complaint by the court or specified authority in applicable cases. |
| IPC Section 193 | Dealt with punishment for giving or fabricating false evidence. |
| IPC Section 228 | Dealt with intentional insult or interruption to a public servant sitting in a judicial proceeding. |
| IPC Section 196 | Dealt with using evidence known to be false. |
Section 245U(3) - Board for Advance Rulings
Section 245U(3), inserted as part of the Finance Act, 2021 restructuring, provides that from the date appointed by the Central Government, the powers of the Authority under Section 245U are to be exercised by the Board for Advance Rulings. The section applies to the Board, with necessary modifications, in the same manner in which it applied to the Authority.
The notified date for this purpose is 1 September 2021.
Section 245V - Procedure of Authority
Section 245V historically empowered the Authority, subject to Chapter XIX-B, to regulate its own procedure in all matters arising from the exercise of its powers under the Income-tax Act.
Following the Finance Act, 2021 changes, a proviso was inserted providing that Section 245V does not apply on or after the date notified by the Central Government. That notified date is 1 September 2021. Accordingly, Section 245V is principally relevant to the procedure of the former Authority before the transition to the Board for Advance Rulings.
Sections 245U and 245V at a glance
| Section | Subject | Current significance |
|---|---|---|
| 245U(1) | Civil court powers | Specified civil court powers referred to in Section 131 are available for exercising advance ruling functions. |
| 245U(2) | Judicial character of proceedings | Contains the statutory deeming provisions concerning civil court and judicial proceeding status. |
| 245U(3) | Board for Advance Rulings | Transfers exercise of Section 245U powers to the Board for Advance Rulings from the notified date. |
| 245V | Procedure of Authority | Historically allowed the Authority to regulate its procedure; it ceased to apply from the notified date. |
Legal position before Bharatiya Sakshya Adhiniyam, 2023
For the historical period requested, Section 245U(2) is read with the Code of Criminal Procedure, 1973 and the Indian Penal Code, 1860 references expressly contained in the provision. The Bharatiya Sakshya Adhiniyam, 2023 does not replace these statutory cross-references for that earlier period. The provision principally concerns the judicial character and procedural powers of advance ruling proceedings rather than laying down a separate code of evidence.
Official resources
Income Tax Department - Section 245U