Income Tax

e-advance rulings Scheme, 2022 notified by CBDT

CBDT has notified e-advance rulings Scheme, 2022

CBDT has notified e-advance rulings Scheme, 2022 vide Notification No. 07/2022. It comes into force from 18th January 2022. This Scheme shall be applicable to applications of advance rulings,–

(a) made to the Board for Advance Rulings under sub-section (1) of section 245Q of the Income Tax Act 1961 (the Act); or

(b) transferred to Board for Advance Rulings under sub-section (4) of section 245Q of the Act

E-advance rulings by Board for Advance Rulings

The Board for Advance Rulings shall pronounce e-advance rulings of applications allocated or transferred to it in accordance with the provisions of this Scheme. The Board for Advance Rulings shall have such other income-tax Authority, ministerial staff, executive or consultant to assist the members of the Board for Advance Rulings, as considered necessary by the Central Board of Direct Taxes.

Allocation of applications for advance ruling

The Principal Director General of Income-tax (Systems) or the Director General of Income tax (Systems), as the case may be, shall, with the approval of the Central Board of Direct Taxes, devise a process to randomly allocate or transfer the applications for advance ruling, referred to in paragraph 3, to the Board for Advance Rulings through an automated allocation system.

Procedure for giving advance ruling

The procedure for giving advance ruling on applications allotted or transferred to a Board for Advance Rulings, is as under:

Procedure for filing applications:

(i) an application, referred to in clause (a) of paragraph 3, shall be made, in Form Nos, 34C, 34D,34DA,34E,34EA mentioned in under Rule 44E of the Rules, by the applicant, to the Secretary or any other officer authorised in writing by the Secretary of Board for Advance Rulings, by electronic mail;

(ii) if the applicant is not hitherto assessed in India, he shall indicate in Annexure I as provided in the relevant Forms to the application:

(a) his head office in any country,(b)the place where his office and residence is located or is likely to be located in India, and

(c)the name and address of his representatives in India, if any, authorised to receive notices and papers and act on his behalf;

(iii) the Secretary may send the application back to the applicant if it is defective in any manner for removing the defects within such time as he may allow. Such application shall be deemed to have been made on the date when it is re-submitted after removing the defects.

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

Procedure on receipt of application

(i) the Board for Advance Rulings shall intimate the applicant about the allocation or transfer, as the case maybe;

(ii) where an application, referred to in clause (b) of paragraph 3, has been allowed by means of an order of the Authority for Advance Rulings under sub-section (2) of section 245R of the Act, on or prior to the date on which such case is transferred to the Board for Advance Rulings, such application shall be deemed to have been allowed by the Board for Advance Rulings;

(iii) upon allocation or transfer, as the case may be, of an application, other than the application referred to in sub-clause (ii), the Board for Advance Rulings shall,-

(a) where the applicant is assessed to tax in India, forward a copy of the application to the Principal Commissioner or Commissioner, as the case may be; or

(b) where the applicant is hitherto not assessed to tax in India, forward a copy of the application to Joint Secretary (Foreign Tax and Tax Research),

along with a requisition to furnish the relevant records within such time as allowed by the Board for Advance Rulings;

(iv) upon receipt of the requisition, as referred to in item (b) of sub-clause (iii), the Joint Secretary (Foreign Tax and Tax Research) shall assign such application to the Principal Chief Commissioner of Income-tax (International Taxation) or Chief Commissioner of Income-tax (International Taxation), as the case may be, connected to the details mentioned in items (b) or (c) of sub -clause (ii) of clause A, requesting him to furnish the relevant records, within such time as may be specified by Board for Advance Rulings;

(v) upon receipt of request, as referred to in item (a) of sub-clause (iii), or in sub-clause (iv), the relevant records shall be furnished to the Board for Advance Rulings by the authority to whom the reference has been made;(vi)where the request is in respect of a transaction already undertaken, the Board for Advance Rulings may require the authority to whom the reference has been made to verify the facts contained in the application;

(vii) where the authority to whom the reference has been made fails to furnish relevant records, as referred to in item (a) of sub -clause (iii) or sub-clause (iv), the Board for Advance Rulings may proceed to allow or reject the application, by order, without waiting for the said records;

(viii) where the relevant records, as referred to in item (a) of sub-clause (iii) or sub-clause (iv), have been submitted by the authority to whom the reference has been made, the Board for Advance Rulings, after examination of the application and the said records, in accordance with the provisions of sub-section (2) of section 245R of the Act, may-

(a) by an order allow the application; or

(b) call upon the applicant to explain as to why the application may not be rejected and direct him to submit any relevant material or information in support of such application within such time as allowed by the Board for Advance Rulings;

(ix) in case of an explanation, referred to in item (b) of sub -clause (viii), has been called from the applicant, he may also request the Board for Advance Rulings to provide him a hearing which may be provided through video conference or video telephony;

(x) where the applicant fails to furnish explanation, referred to in item (b) of sub-clause (viii), within such time or extended time, as may be allowed by the Board for Advance Rulings, it may proceed to pass the order under the provisions of sub-section (2) of section 245R of the Act, without waiting for the said explanation;

(xi) where the applicant furnishes the explanation, referred to in item (b) of sub-clause (viii), the Board for Advance Rulings may, by an order under sub-section (2) of section 245R of the Act, allow or reject the application, providing reasons for rejection in case the application is rejected;(xii)The Board for Advance Rulings shall send a copy of the order referred to in sub -clause (vii) or item (a) of sub-clause (viii) or sub-clause (x) or sub-clause (xi), as the case may be, to the applicant and the Principal Commissioner or Commissioner, as the case may be.

Order for advance ruling.-

where an application for advance rulings has been allowed by an order, as referred to in sub-clause (vii) or item (a) of sub-clause (viii) or sub-clause (x) or sub-clause (xi) of clause B, the Board for Advance Rulings may send a notice to the applicant and the authority to whom the reference has been made, to submit such further material, information or evidence, as may be relevant to the proceedings, within such time or extended time, as may be allowed by the Board for Advance Rulings;

the applicant or the authority to whom the reference has been made may, after the application has been allowed, suo motu submit any further material, information or evidence, as may be relevant to such proceedings, to the Board for Advance Rulings;

the applicant or the authority to whom the reference has been made, shall respond to the notice, as referred to in clause (i), within the specified time or such time as may be extended by the Board for Advance Rulings, on the basis of a request made in this behalf;

the Board for Advance Rulings shall, after considering the response, as referred to in clause (iii), and after providing an opportunity of being heard (through video conferencing or video telephony) under sub-section (5) of section 245R of the Act on the request of the applicant pronounce the advance ruling on the question specified in the application and send a copy thereof to the applicant and the authority to whom the reference has been made.

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