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August 2016

Advance ruling- Application for advance ruling- A. Y. 2012-13- Bar of application where matter is pending consideration before Income-tax Authorities- Mere notice u/s. 143(2) without any specific queries would not mean matter was pending before Income-tax Authorities- Such notice would not bar an application for advance ruling-

By K. B. Bhujle Advocate
Reading Time 1 mins
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LS Cable and System Ltd vs. CIT; 385 ITR 99 (Del):

Assessee’s application for advance Ruling for the A. Y. 2012-13, was rejected on the ground that the matter was pending before the Assessing Officer at the time of application in view of the fact that the notice u/s. 143(2)(ii) was issued by the Assessing Officer.

The Delhi High Court allowed the assessee’s writ petition and held as under:

“i) Mere issuance of a notice u/s. 143(2) of the Act, by merely stating that “there are certain points in connection with the return of income on which I would like some other information” did not amount to the issues raised in the application filed by the assessee before the Authority for Advance Ruling being already pending before the Assessing Officer.

ii) There was no statutory bar to the Authority for Advance Rulings considering the application.”

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