Law:

Section:

[2008] 305 ITR 375 [2008] 174 Taxman 95 (AAR) AUTHORITY FOR ADVANCE RULINGS OF NEW DELHI Burmah Castrol Plc., In re* JUSTICE P.V. REDDI, CHAIMAN AND A. SINHA AND RAO RANVIJAY SINGH, MEMBER A.A.R. NO. 772 OF 2008 SEPTEMBER 10, 2008 Section 245R of the Income-tax Act, 1961 - Advance ruling - Procedure on receipt of application for - Applicant, a non-resident company, earned long-term capital gain on sale of certain equity shares of an Indian company - It filed an application seeking advance ruling on its tax liability on such capital gain - Director of Income-tax objected to admission of application on ground that applicant had already moved assessing authority under section 197 seeking an order that purchaser of shares should be directed to make deduction of tax at source at 10 per cent on sale proceeds of shares and Assessing Officer had rejected assessee's claim, directing deduction of tax at source at a higher rate - Whether if before regular assessment proceeding is initiated, advance ruling authority gives a ruling in exercise of its jurisdiction conferred by Act, that ruling is binding on assessing authority and it has to be followed - Held, yes - Whether order passed under section 197 regarding deduction of tax at source as a tentative measure does in any way fetter jurisdiction of authority to proceed with application - Held, no - Whether an applicant can be prevented from seeking advance ruling merely because Tribunal, in another case, has decided a similar issue in favour of revenue - Held, no - Whether viewed from any angle, objection raised by Commissioner is unsustainable and, therefore, application filed by applicant is to be admitted - Held, yes FACTS The applicant, a non-resident company, earned long-term capital gain on sale of certain equity shares of an Indian company. It filed an application seeking advance ruling on its tax liability on such capital gain. The Director of Income-tax (DIT) opposed the admission of the application on the ground that the applicant had already moved the assessing authority under section 197 seeking an order that the transferee of said shares would be permitted to deduct tax at source on the sale proceeds of…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492