799/CBDT. - Income Tax - 799/CBDT

INSTRUCTION NO. 799/CBDT Dated : November 23, 1974 Section(s) Referred: 195 Statute: Income - Tax Act, 1961 Attention is invited to paragraph 14 of Instruction No.37 of 1969 (F.No.7A/19/68-IT-AII) dated 17th April, 1969 wherein it has been stated as follows:- ...." For clarification of other matters not covered by the provision of Section 195, either the Indian participant or the foreign participant in the collaboration, could furnish the full facts and the terms of the agreement to the Commissioner of Income-tax concerned or the Central Board of Direct Taxes and seek a ruling. The IT Act does not contain any provision for advance official rulings being given either by the Commissioner of Income tax or by the Central Board of Direct Taxes but it has been decided that in all such cases, if the facts are clear, the Central Board of Direct Taxes would be prepared to give an informal ruling in advance, which would be given effect to by the ITO later while making the assessment". 2. The question whether the Board has powers to give advance rulings in individual cases has been re-examined, and it has been decided that having regard to the express prohibition laid down by clause (a) of the proviso to section 119(1) of the IT Act, the Board cannot issue orders, instructions or directions so as to require any income tax authority to make any particular assessment or dispose of a particular case in a particular manner. Having regard to this position in law, the Board will not hereafter give any advance rulings in individual cases. Board's Instructions No.37 of 1969 may be treated as having been modified to this extent. 3. This may be brought to the notice of all officers in each charge.