Advance ruling

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C.A. LINESH PATIL (Querist)
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19 November 2010 A public sector company has raised a question in relation to computation of income to the AO.

now they want to ask the same question to Advance ruling authority.
they are making allegation that they cant make application for question which is pending before court only.
Can they do so.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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19 November 2010 As per sec 245R, the authority shall not allow the application where the question is raised in the application - is already pending before any incoe tax authority or appellate tribunal or any court.

C.A. LINESH PATIL

C.A. LINESH PATIL (Querist)
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19 November 2010 Sir the answer u gave that is also given in a book but when i refer Act for this got the following language
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;

sir please clarify me as soon as possible.

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C.A.laxmikant Saini

C.A.laxmikant Saini (Expert)
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20 November 2010 Dear linesh

Under section 245R, certain restrictions have been imposed on the admissibility of an application, if the question concerned is pending before other authorities. According to it, the authority shall not allow an application where the question raised by the non-resident applicant (or a resident applicant having transaction with a non-resident) is already pending before any income-tax authority or appellate Tribunal or any court of law.

Hence as per section 245 R the application cant be sought for advance ruiling if the question is already pending with any Income tax authority.

As Per Section 116 of IT Act Assessing Officer is a tax authority hence the the applicant cant made application for the matter already pending with AO

Best Regards

C.A. Laxmikant Saini