2019 (2) TMI 1339 - AAR - Income Tax

Application for advance ruling - Scrutiny assessment before AAR - HELD THAT - There are no scrutiny proceedings pending before the assessing officer with regard to the question raised before the Hon ble AAR. With out prejudice to the final report to be submitted u/s 245 R(4) after examining in detail all the facts relating to the transaction, the admission of the application may be accepted. In view of the above, the application is admitted leaving all questions of law and facts open. The Department may submit its final report at the earliest.

Summary

Issues involved: Admission of application before the Authority for Advance Rulings

In the present case, the Authority for Advance Rulings in New Delhi heard arguments from the applicant's representative, Mr. Chaval Narayan, and the Income-tax Department's representative, Mr. K.V. Arvind. The Income-tax Department referred to a letter dated 15.02.2019, which stated that there were no pending scrutiny proceedings before the assessing officer regarding the question raised before the Authority for Advance Rulings. The letter also mentioned that the admission of the application could be accepted without prejudice to the final report to be submitted after examining all the facts related to the transaction. Based on this information, the Authority for Advance Rulings admitted the application, keeping all questions of law and facts open for further consideration. The Department was instructed to submit its final report promptly.

This judgment primarily revolves around the issue of the admission of the application before the Authority for Advance Rulings. The key consideration was the absence of pending scrutiny proceedings before the assessing officer in relation to the matter raised before the Authority. The letter presented by the Income-tax Department supported the admission of the application, indicating that the final report would be submitted after a detailed examination of all relevant facts. The Authority accepted the application based on this information, emphasizing the importance of a prompt submission of the final report by the Department.

Overall, the judgment reflects a procedural aspect of the Advance Ruling Authority's functioning, specifically focusing on the admission process for applications. The decision to admit the application was based on the absence of pending scrutiny proceedings and the assurance of a detailed examination leading to the submission of a final report by the Income-tax Department. By leaving all questions of law and facts open, the Authority maintained a neutral stance, awaiting the Department's comprehensive review and report on the transaction in question. The emphasis on promptness in submitting the final report highlights the Authority's commitment to efficient and timely resolution of matters brought before it.