Section 245N of Income Tax Act "Advance Rulings Definitions"
245N. In this Chapter, unless the context otherwise
requires,-
(a) "advance ruling" means-
(i) a determination by the Authority in relation to a
transaction which has been undertaken or is proposed to be
undertaken by a non-resident applicant; or
(ii) a determination by the Authority in relation to the tax
liability of a non-resident arising out of a transaction
which has been undertaken or is proposed to be undertaken by
a resident applicant with such non-resident; or
(iia) a determination by the Authority in relation to the
tax liability of a resident applicant, arising out of a
transaction which has been undertaken or is proposed to be
undertaken by such applicant;
and such determination shall include the determination of
any question of law or of fact specified in the application;
(iii) a determination or decision by the Authority in
respect of an issue relating to computation of total income
which is pending before any income-tax authority or the
Appellate Tribunal and such determination or decision shall
include the determination or decision of any question of law
or of fact relating to such computation of total income
specified in the application;
(iv) a determination or decision by the Authority whether an
arrangement, which is proposed to be undertaken by any
person being a resident or a non-resident, is an
impermissible avoidance arrangement as referred to in
Chapter X-A or not:
Provided that where an advance ruling has been pronounced,
before the date on which the Finance Act, 2003 receives the
assent of the President, by the Authority in respect of an
application by a resident applicant referred to in
sub-clause (ii) of this clause as it stood immediately
before such date, such ruling shall be binding on the
persons specified in section 245S;
(b) "applicant" means-
(A) any person who-
(I) is a non-resident referred to in sub-clause (i) of
clause (a); or
(II) is a resident referred to in sub-clause (ii) of clause
(a); or
(III) is a resident referred to in sub-clause (iia) of
clause (a) falling within any such class or category of
persons as the Central Government may, by notification in
the Official Gazette, specify; or
(IV) is a resident falling within any such class or category
of persons as the Central Government may, by notification in
the Official Gazette, specify in this behalf; or
(V) is referred to in sub-clause (iv) of clause (a),
and makes an application under sub-section (1) of section
245Q;
(B) an applicant as defined in clause (c) of section 28E of
the Customs Act, 1962 (52 of 1962);
(C) an applicant as defined in clause (c) of section 23A of
the Central Excise Act, 1944 (1 of 1944);
(D) an applicant as defined in clause (b) of section 96A of
the Finance Act, 1994 (32 of 1994);]
(c) "application" means an application made to the Authority
under sub-section (1) of section 245Q;
(d) "Authority" means the Authority for Advance Rulings
constituted under section 245-O;
(e) "Chairman" means the Chairman of the Authority;
(f) "Member" means a Member of the Authority and includes
the Chairman and Vice-chairman;
(g) "Vice-chairman" means the Vice-chairman of the
Authority.
245-O. (1) The Central Government shall constitute an
Authority for giving advance rulings, to be known as
"Authority for Advance Rulings":
Provided that the Authority shall cease to act as an
Authority for Advance Rulings for the purposes of Chapter V
of the Customs Act, 1962 (52 of 1962) on and from the date
of appointment of the Customs Authority for Advance Rulings
under section 28EA of that Act.
(1A) On and from the date of appointment of the Customs
Authority for Advance Rulings referred to in the proviso to
sub-section (1), the Authority shall act as an Appellate
Authority, for the purpose of Chapter V of the Customs Act,
1962 (52 of 1962):
Provided that the Authority shall not admit any appeal
against any ruling or order passed earlier by it in the
capacity of the Authority for Advance Rulings in relation to
any matter under Chapter V of the Customs Act, 1962 (52 of
1962) after the date of such appointment of the Customs
Authority for Advance Rulings.
(2) The Authority shall consist of a Chairman and such
number of Vice-chairmen, revenue Members and law Members as
the Central Government may, by notification, appoint.
(3) A person shall be qualified for appointment as-
(a) Chairman, who has been a Judge of the Supreme Court or
the Chief Justice of a High Court or for at least seven
years a Judge of a High Court;
(b) Vice-chairman, who has been Judge of a High Court;
(c) a revenue Member-
(i) from the Indian Revenue Service, who is, or is qualified
to be, a Member of the Board; or
(ii) from the Indian Customs and Central Excise Service, who
is, or is qualified to be, a Member of the Central Board of
Excise and Customs, on the date of occurrence of vacancy;
(d) a law Member from the Indian Legal Service, who is, or
is qualified to be, an Additional Secretary to the
Government of India on the date of occurrence of vacancy.
(4) The terms and conditions of service and the salaries and
allowances payable to the Members shall be such as may be
prescribed.
(5) The Central Government shall provide to the Authority
with such officers and employees, as may be necessary, for
the efficient discharge of the functions of the Authority
under this Act.
(6) The powers and functions of the Authority may be
discharged by its Benches as may be constituted by the
Chairman from amongst the Members thereof.
(6A) In the event of the occurrence of any vacancy in the
office of the Chairman by reason of his death, resignation
or otherwise, the senior-most Vice-chairman shall act as the
Chairman until the date on which a new Chairman, appointed
in accordance with the provisions of this Act to fill such
vacancy, enters upon his office.
(6B) In case the Chairman is unable to discharge his
functions owing to absence, illness or any other cause, the
senior-most Vice-Chairman shall discharge the functions of
the Chairman until the date on which the Chairman resumes
his duties.
(7) A Bench shall consist of the Chairman or the
Vice-chairman and one revenue Member and one law Member:
Provided that where the Authority is dealing with an
application seeking advance ruling in any matter relating to
this Act, the revenue Member of the Bench shall be such
Member as referred to in sub-clause (i) of clause (c) of
sub-section (3).
(8) The Authority shall be located in the National Capital
Territory of Delhi and its Benches shall be located at such
places as the Central Government may, by notification
specify.