Application for advance ruling was rejected as question on which advance ruling was sought was already reported in the return filed by the tax payer

Application for advance ruling was rejected as question on which advance ruling was sought was already reported in the return filed by the tax payer

In the instant case the moot question that arose for consideration before AAR was whether the question raised by the applicant before Authority was already pending before I-T authority and application was liable to be rejected due to the bar provided in proviso to section 245R(2)?

The AAR held as under:

1) The bar provided in proviso to section 245R would operate only in respect of questions pending before the I-T authority. Mere filing of return wouldn’t attract the bar, unless the question raised in the application was the same issue as included in the return filed;

2) In the instant case notice under section 143(2) was already issued before filing of application before the Authority. The transactions on which Advance Ruling was sought, were already shown in the return filed by the applicant before the date of application;

3) With issue of notice under section 143(2) of the Act, particulars of income and claims of assessee in the return would be deemed to be pending for adjudication before the Assessing Officer;

4) It had, therefore, to be held that the question raised in the application for advance ruling was pending for adjudication before the assessing authority and the bar created under the proviso to section 245R(2) would operate. Therefore, application was not admitted for adjudication and was rejected – Hyosung Corporation, Korea, In re 36 taxmann.com 150 (AAR - New Delhi)

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