CBDT vide Notification No. 38/2022 in S.O. 2569(E) dated 12.06.2023 through e-advance rulings (Amendment) Scheme, 2023 has amended e-advance rulings Scheme, 2022 and incorporated the concept of 'majority rule' in case there is a difference in opinions of Board Members in advance rulings.
The amendment regarding the majority rule is mentioned in paragraph 6(C)(v) of the e-advance rulings Scheme, 2022. The amendment inserts a new clause (v) in subparagraph (c) of Paragraph 6 of the Scheme to prescribe that if the Members of a Board for Advance Rulings differ in opinion on any point or points, the Board for Advance Rulings shall refer such point or points to the Principal Chief Commissioner of Income-tax (International Taxation), who shall nominate one Member from any other Board for Advance Rulings and such point or points shall be decided according to the opinion of the majority of the Members.
This amendment shall come into effect from 12.06.2023. Henceforth, in case of any split in opinion on any point or points in an advance ruling, the decision on such point or points will depend on the decision to the opinion of the majority of the Members.
The scheme is amended by virtue of powers granted to the Central Government by sub-sections (9) and (10) of Section 245R of the Income Tax Act, 1961 (‘Act’).
The relevant extract of the notification is reproduced below-
2. In the e-advance rulings Scheme, 2022, in paragraph 6, in sub-paragraph (C), for clause (iv), the following clauses shall be substituted, namely:––
“(iv) 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 subsection (5) of section 245R of the Act on the request of the applicant, subject to the provisions of clause (v), if applicable, 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;
(v) if the Members of a Board for Advance Rulings differ in opinion on any point or points, the Board for Advance Rulings shall refer such point or points to the Principal Chief Commissioner of Income-tax (International Taxation), who shall nominate one Member from any other Board for Advance Rulings and such point or points shall be decided according to the opinion of the majority of the Members.”
One should note that only one additional member from any other Board can be nominated to decide Advance Rulings in case of difference of opinion.
On 18.01.2022, the Central Board of Direct Taxes (CBDT) notified e-advance rulings Scheme, 2022 which was made applicable from that date. The Scheme shall apply to the applications of advance rulings made to the Board for Advance Ruling or applications of advance rulings transferred to such Board.
The provisions relating to filing of an application for the advance ruling are contained in section 245Q of the Act. An appeal against an order for advance ruling passed by the Board for Advance Rulings under this Scheme shall lie before the High Court.
Read the full text of CBDT Notification No. 38/2023 dated 12.06.2023 on Incorporating 'majority rule' to address split in Advance Rulings under e-advance rulings Scheme 2022
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 12th June, 2023
(Income-Tax)
S.O. 2569(E).—In exercise of the powers conferred by sub-sections (9) and (10) of section 245R of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following amendments in the e-advance rulings Scheme, 2022, namely:
1. Short title and commencement.―(1) This Scheme may be called the e-advance rulings (Amendment) Scheme, 2023.
(2) It shall come into force on the date of its publication in the Official Gazette.
2. In the e-advance rulings Scheme, 2022, in paragraph 6, in sub-paragraph (C), for clause (iv), the following clauses shall be substituted, namely:–
“(iv) 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, subject to the provisions of clause (v), if applicable, 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;
(v) if the Members of a Board for Advance Rulings differ in opinion on any point or points, the Board for Advance Rulings shall refer such point or points to the Principal Chief Commissioner of Income-tax (International Taxation), who shall nominate one Member from any other Board for Advance Rulings and such point or points shall be decided according to the opinion of the majority of the Members.”.
[F. No. 38/2023 F.No. 370142/62/2021-TPL(Part-III)]
PRAJNA PARAMITA, Director
Note: The principal Scheme was published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number S.O. 248(E), dated the 18th January, 2022.
Download CBDT Notification No. 38/2023 dated 12.06.2023 on Incorporating 'majority rule' to address split in Advance Rulings under e-advance rulings Scheme 2022 in PDF format
0 Comments