[18
January 2022] S.O.
248(E).-In exercise of the powers conferred by sub-sections (9) and (10) of
section 245R and subsections (2) and (3) of section 245W of the Income-tax Act,
1961 (43 of 1961), the Central Government hereby makes the following Scheme,
namely:- (1) This Scheme may be
called the "e-advance rulings Scheme, 2022". (2) It shall come into
force on the date of its publication in the Official Gazette. (1) In this Scheme,
unless the context otherwise requires,- (i) "Act" means
the Income-tax Act, 1961 (43 of 1961); (ii) "addressee"
shall have the same meaning as assigned to it in clause (b) of sub-section (1)
of section 2 of the Information Technology Act, 2000 (21 of 2000); (iii) "advance
ruling" shall have the same meaning as assigned to it in clause (a) of
section 245N of the Act; (iv) "applicant"
means the assessee who had filed an application under section 245Q of the Act; (v) "authorised
representative" shall have the same meaning as assigned to it in
sub-section (2) of section 288 of the Act; (vi) "automated
allocation system" means an algorithm for randomised allocation of cases,
by using suitable technological tools, including artificial intelligence and
machine learning, with a view to eliminate discretion and optimise the use of
resources; (vii) "Board For
Advanced Rulings" means the Board for Advance Rulings constituted under
section 245- OB of the Act; (viii) "computer
resource" shall have the same meaning as assigned to it in clause (k) of
sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of
2000); (ix) "computer
system" shall have the same meaning as assigned to it in clause (l) of
sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000); (x) "designated
portal" means the web portal designated as such by the Principal Director
General of Income-tax (Systems) or the Director General of Income-tax
(Systems), as the case may be; (xi) "digital
signature" shall have the same meaning as assigned to it in clause (p) of
sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of
2000); (xii) "electronic
mode" means any communication by way of an e-mail, video-telephony or
video conferencing or any other electronic media; (xiii) "electronic record"
shall have the same meaning as assigned to it in clause (t) of sub-section (1)
of section 2 of the Information Technology Act, 2000 (21 of 2000); (xiv) "email" or
"electronic mail" and "electronic mail message" means a
message or information created or transmitted or received on a computer,
computer system, computer resource or communication device including
attachments in text, image, audio, video and any other electronic record, which
may be transmitted with the message; (xv) "Joint Secretary
(Foreign Tax and Tax Research)" shall mean a person appointed by the
Central Government as the Joint Secretary, Foreign Tax and Tax Research in the
Department of Revenue, Ministry of Finance; (xvi) "Principal
Commissioner or Commissioner", in respect of an application, means- (i) the Principal
Commissioner or Commissioner of Income-tax, specified in the application; or (ii) the Principal
Commissioner or Commissioner of Income-tax designated by the Board in respect
of the application; (xvii) "registered
e-mail address" means the e-mail address at which an electronic
communication may be delivered or transmitted to the addressee, including- (a) the e- mail address
available in the electronic filing account of the addressee registered in the
designated portal; or (b) the e-mail address
available in the last income-tax return furnished by the addressee; or (c) the e-mail address
available in the permanent account number database relating to the addressee;
or (d) in the case of
addressee being an individual who possesses the Aadhaar number, the e-mail
address of addressee available in the database of Unique Identification
Authority of India; or (e) in the case of
addressee being a company, the e-mail address of the company as available on
the official website of Ministry of Corporate Affairs; or (f) any e-mail address
made available by the addressee to the income-tax authority or any person
authorised by such authority; (xviii) "Rules"
means the Income-tax Rules,1962; (xix) "Secretary"
shall mean a Commissioner appointed by Central Board of Direct Taxes as
Secretary of Board for Advance Rulings; (xx) "video
conferencing or video telephony" means the technological solutions for the
reception and transmission of audio-video signals by users at different
locations, for communication between people in real-time. (2) Words and expressions
used herein and not defined, but defined in the Act, shall have the meaning
respectively assigned to them in the Act. This Scheme shall be applicable to applications
of advance rulings,- (a) made to the Board for
Advance Rulings under sub-section (1) of section 245Q of the Act; or (b) transferred to Board
for Advance Rulings under sub-section (4) of section 245Q of the Act. (1) The Board for Advance
Rulings shall pronounce eadvance rulings of applications allocated or
transferred to it under paragraph 5, in accordance with the provisions of this
Scheme; (2) The Board for Advance
Rulings shall have such other income-tax Authority, ministerial staff,
executive or consultant to assist the members of the Board for Advance Rulings,
as considered necessary by the Central Board of Direct Taxes. The Principal Director General of Income-tax
(Systems) or the Director General of Income tax (Systems), as the case may be,
shall, with the approval of the Central Board of Direct Taxes, devise a process
to randomly allocate or transfer the applications for advance ruling, referred
to in paragraph 3, to the Board for Advance Rulings through an automated
allocation system. The procedure for giving advance ruling on
applications allotted or transferred to a Board for Advance Rulings, referred
to in paragraph 5, shall be as per the following, namely:- A. Procedure for filing
applications.- (i) an application,
referred to in clause (a) of paragraph 3, shall be made, in Form Nos, 34C,
34D,34DA,34E,34EA mentioned in under Rule 44E of the Rules, by the applicant,
to the Secretary or any other officer authorised in writing by the Secretary of
Board for Advance Rulings, by electronic mail; (ii) if the applicant is
not hitherto assessed in India, he shall indicate in Annexure I as provided in
the relevant Forms to the application: (a) his head office in
any country, (b) the place where his
office and residence is located or is likely to be located in India, and (c) the name and address
of his representatives in India, if any, authorised to receive notices and
papers and act on his behalf; (iii) the Secretary may
send the application back to the applicant if it is defective in any manner for
removing the defects within such time as he may allow. Such application shall
be deemed to have been made on the date when it is re-submitted after removing
the defects; (iv) an applicant may
withdraw an application within thirty days from the date of the application. B. Procedure on receipt
of application.- (i) the Board for Advance
Rulings shall intimate the applicant about the allocation or transfer, as the
case may be; (ii) where an application,
referred to in clause (b) of paragraph 3, has been allowed by means of an order
of the Authority for Advance Rulings under sub-section (2) of section 245R of
the Act, on or prior to the date on which such case is transferred to the Board
for Advance Rulings, such application shall be deemed to have been allowed by
the Board for Advance Rulings; (iii) upon allocation or
transfer, as the case may be, of an application, other than the application
referred to in sub-clause (ii), the Board for Advance Rulings shall,- (a) where the applicant
is assessed to tax in India, forward a copy of the application to the Principal
Commissioner or Commissioner, as the case may be; or (b) where the applicant
is hitherto not assessed to tax in India, forward a copy of the application to
Joint Secretary (Foreign Tax and Tax Research), along with a requisition to
furnish the relevant records within such time as allowed by the Board for
Advance Rulings; (iv) upon receipt of the
requisition, as referred to in item (b) of sub-clause (iii), the Joint
Secretary (Foreign Tax and Tax Research) shall assign such application to the
Principal Chief Commissioner of Income-tax (International Taxation) or Chief
Commissioner of Income-tax (International Taxation), as the case may be,
connected to the details mentioned in items (b) or (c) of sub -clause (ii) of
clause A, requesting him to furnish the relevant records, within such time as
may be specified by Board for Advance Rulings; (v) upon receipt of
request, as referred to in item (a) of sub-clause (iii), or in sub-clause (iv),
the relevant records shall be furnished to the Board for Advance Rulings by the
authority to whom the reference has been made; (vi) where the request is
in respect of a transaction already undertaken, the Board for Advance Rulings
may require the authority to whom the reference has been made to verify the
facts contained in the application; (vii) where the authority
to whom the reference has been made fails to furnish relevant records, as
referred to in item (a) of sub -clause (iii) or sub-clause (iv), the Board for
Advance Rulings may proceed to allow or reject the application, by order,
without waiting for the said records; (viii) where the relevant
records, as referred to in item (a) of sub-clause (iii) or sub-clause (iv),
have been submitted by the authority to whom the reference has been made, the
Board for Advance Rulings, after examination of the application and the said
records, in accordance with the provisions of sub-section (2) of section 245R
of the Act, may- (a) by an order allow the
application; or (b) call upon the
applicant to explain as to why the application may not be rejected and direct
him to submit any relevant material or information in support of such
application within such time as allowed by the Board for Advance Rulings; (ix) in case of an explanation,
referred to in item (b) of sub -clause (viii), has been called from the
applicant, he may also request the Board for Advance Rulings to provide him a
hearing which may be provided through video conference or video telephony; (x) where the applicant
fails to furnish explanation, referred to in item (b) of sub-clause (viii),
within such time or extended time, as may be allowed by the Board for Advance
Rulings, it may proceed to pass the order under the provisions of sub-section
(2) of section 245R of the Act, without waiting for the said explanation; (xi) where the applicant
furnishes the explanation, referred to in item (b) of sub-clause (viii), the
Board for Advance Rulings may, by an order under sub-section (2) of section
245R of the Act, allow or reject the application, providing reasons for
rejection in case the application is rejected; (xii) The Board for Advance
Rulings shall send a copy of the order referred to in sub -clause (vii) or item
(a) of sub-clause (viii) or sub-clause (x) or sub-clause (xi), as the case may
be, to the applicant and the Principal Commissioner or Commissioner, as the
case may be. C. Order for advance
ruling.- (i) where an application
for advance rulings has been allowed by an order, as referred to in sub-clause
(vii) or item (a) of sub-clause (viii) or sub-clause (x) or sub-clause (xi) of
clause B, the Board for Advance Rulings may send a notice to the applicant and
the authority to whom the reference has been made, to submit such further
material, information or evidence, as may be relevant to the proceedings,
within such time or extended time, as may be allowed by the Board for Advance
Rulings; (ii) the applicant or the
authority to whom the reference has been made may, after the application has
been allowed, suomotu submit any further material, information or evidence, as
may be relevant to such proceedings, to the Board for Advance Rulings; (iii) the applicant or the
authority to whom the reference has been made, shall respond to the notice, as
referred to in clause (i), within the specified time or such time as may be
extended by the Board for Advance Rulings, on the basis of a request made in
this behalf; (iv) the Board for Advance
Rulings shall, after considering the response, as referred to in clause (iii),
and after providing an opportunity of being heard (through video conferencing
or video telephony) under sub-section (5) of section 245R of the Act on the
request of the applicant pronounce the advance ruling on the question specified
in the application and send a copy thereof to the applicant and the authority
to whom the reference has been made. (1) The Board for Advance
Rulings may at its discretion permit or require the applicant to submit such
additional facts as may be necessary to enable it to pronounce its advance
ruling. (2) Where in the course
of the proceedings before the Board for Advance Rulings, a fact is alleged
which cannot be borne out by, or is contrary to, the record, it shall be stated
clearly and concisely and supported by a duly sworn affidavit. The applicant shall not, except by leave of
the Board for Advance Rulings, urge or be heard in support of any additional
question not set forth in the application, but in deciding the application the
Board for Advance Rulings shall, at its discretion, consider all aspects of the
questions set forth as may be necessary to pronounce a ruling on the substance
of the questions posed for its consideration. Where in the course of any proceedings before
the Board for Advance Rulings any fact not contained in the application for
advance ruling (including the annexure and the statements and other documents
accompanying such annexure), referred to in paragraph 3, are sought to be
relied upon, they shall be submitted to the Board for Advance Rulings in
writing and shall be verified in the same manner as provided for in such
application. (1) The Board for Advance
Rulings shall, for the purpose of exercising its powers, have all the powers of
a civil court under the Code of Civil Procedure, 1908 (5 of 1908) as are
referred to in section 131 of the Act. (2) The Board for Advance
Rulings shall be deemed to be a civil court for the purposes of section 195,
but not for the purposes of Chapter XXVI of the Code of Criminal Procedure,
1973 (2 of 1974) and every proceeding before the Board for Advance Rulings
shall be deemed to be a judicial proceeding within the meaning of sections 193
and 228, and for the purpose of section 196, of the Indian Penal Code (45 of
1860). (3) If any difficulty
arises in giving effect to any order of the Board for Advance Rulings, it may,
on its own motion or on an application made by the applicant or the Principal
Commissioner of Income-tax or the Commissioner of Income-tax, as the case may
be, remove the difficulty in so far as it is not inconsistent with the
provisions of the Act. (1) The Secretary shall
have the custody of the records or e-records of the Board for Advance Rulings
and shall exercise such other functions as are assigned to him under this
Scheme or by the Board for Advance Rulings by separate order. (2) The official seal of
the Board for Advance Rulings shall be kept in custody of the Secretary. (3) The Secretary shall
also have the following powers and duties, namely:- (i) to receive all
applications filed before the Board for Advance Rulings ; (ii) to scrutinise the
applications to find out whether they are in conformity with the Act, the rules
and the procedure; (iii) to point out defects
in such application to the parties and require them to remove the defects by
affording them a reasonable opportunity to do so and, where, within the time
granted, the defects are not removed, to obtain necessary orders of the Board
for Advance Rulings ; (iv) to fix the date of
hearing for the applications in consultation with the members of the Board for
Advance Rulings and direct the issue of notices therefor; (v) to issue the service
of notices or other processes and to ensure that the parties are properly
served; (vi) to requisition
records from the custody of any person including a Commissioner of Income-tax
or any other authority; (vii) to allow inspection
of records of the Board for Advance Rulings ; (viii) to direct any formal
amendment of the records of the Board for Advance Rulings ; (ix) to grant certified
copies of the orders of the Board for Advance Rulings to the parties; (x) to grant certified
copies of documents filed in the proceedings to the parties in accordance with
the rules; (xi) to bring on record
legal representatives, in case of death or retirement of any party to the
proceedings and to make such appropriate amendments in the cause title as may
become necessary in the other situations; and (xii) to discharge any
other function as may be assigned by the Board for Advance Rulings by special
or general order. An authorised representative appearing for
the applicant at the hearing shall file, before the commencement of the
hearing, a document authorising him to appear for the applicant and if he is a
relative of the applicant, the document shall state the nature of his
relationship with the applicant, or if he is a person regularly employed by the
applicant the capacity in which he is at the time employed. For the purposes of this Scheme, an
electronic record shall be authenticated by the-- (a) Board for Advance
Rulings , the Principal Commissioner of Income-tax or the Commissioner of
Income-tax, as the case may be, by affixing its digital signature; (b) applicant or his
authorised representative, by affixing his digital signature if he is required
under the Rules to furnish his return of income under digital signature, and in
any other case, by communicating through his registered email address. (1) The applicant shall
not be required to appear either personally or through authorised
representative in connection with any proceedings under this Scheme before the
Board for Advance Rulings or before the Secretary, ministerial staff, executive
or consultant posted with the Board for Advance Rulings . (2) The Principal
Director General of Income Tax (Systems) or Director General of Income Tax
(Systems), as the case may be, shall establish suitable facilities for video
conferencing including telecommunication application software which supports
video telephony at such locations as may be necessary, so as to ensure that the
applicant, or his authorised representative, is not denied the benefit of this
Scheme merely on the ground that such applicant or his authorised
representative, or any other person does not have access to video conferencing
at his end. (1) The Board for Advance
Rulings may, with a view to rectifying any mistake apparent from the record,
amend any order passed by it before the ruling pronounced by the Board for
Advance Rulings has been given effect to by the Assessing Officer. (2) Such amendment may be
made suo motu or when the mistake is brought to its notice by the applicant or
the Principal Commissioner of Income-tax or Commissioner of Income-tax, as the
case may be, but only after allowing the applicant and the Principal
Commissioner of Income-tax or Commissioner of Income-tax, as the case may be,
reasonable opportunity of being heard. (1) An appeal against an
order for advance ruling passed by the Board for Advance Rulings under this
Scheme shall lie before the High Court. (2) The Assessing
Officer, having jurisdiction over the applicant, on the directions of the
Principal Commissioner or Commissioner, may file an appeal to the High Court
against an order of Board for Advance Rulings. . The proceedings before the Board for Advance
Rulings shall not be open to the public and no person (other than the
applicant, his employee, the concerned officers of the Board for Advance
Rulings or the Income-tax authority or the authorised representatives) shall,
without the permission of the Board for Advance Rulings , remain present during
such proceedings, even on video conferencing or video telephony. (1) The opportunity for
hearing through video conferencing or video telephony shall be facilitated by
any income-tax authority as authorised by the Board for Advance Rulings, who
will provide the link and password to the applicant and concerned parties in
advance. (2) All communication of
the Board for Advance Rulings inward and outward shall be carried out by any
income-tax authority as authorised by the Board for Advance Rulings . (1) For the purposes of
this Scheme,- (a) all communications
between the Board for Advance Rulings and the applicant, or his authorised
representative, shall be exchanged by electronic mode; (b) all communications
between the Board for Advance Rulings and the Principal Commissioner of
Income-tax or the Commissioner of Income-tax, as the case may be, shall be
exchanged by electronic mode: Provided that any application received in a
mode other than electronic mode by the Board for Advance Rulings may be
forwarded to the Principal Commissioner of Income-tax or the Commissioner of
Income-tax, as the case may be, electronically, to the extent technologically
feasible; (c) every notice or order
or any other electronic communication under this Scheme from the Board for
Advance Rulings shall be delivered to the addressee, being the applicant by
sending an e-mail to the registered email address of the applicant or his
authorised representative; (d) the applicant or the
authorised representative shall file his response to any notice or order or any
other electronic communication, under this Scheme, to the Board for Advance
Rulings through his registered email address; (e) the Principal
Commissioner of Income-tax or the Commissioner of Income-tax, as the case may
be, shall file his response to any notice or order or any other electronic
communication, under this Scheme, to the Board for Advance Rulings through
official electronic mail facility. (1) The language of the
Board for Advance Rulings shall be in Hindi or English, at the option of the
applicant. (2) Where any document is
in a language other than English or Hindi, an English translation thereof
should also be filed along therewith. (3) The ruling, and other
orders passed by the Board for Advance Rulings may, at the discretion of the
Board for Advance Rulings , be in Hindi or English. The Board for Advance Rulings, if deems fit
its order to be published in any authoritative report or the press, may be sent
for publication with such conditions as the Board for Advance Rulings specify. Save as otherwise provided herein above, all other
provisions of the Chapter XIX-B of the Act shall apply. The Principal Chief Commissioner of
Income-tax (International Taxation) shall, wherever required, in consultation
with Principal Director General of Income Tax (Systems) or Director General of
Income Tax (Systems), as the case may be, with the approval of Board, lay down
the standards, procedures and processes for effective functioning of the
conduct of e-advance rulings proceedings under this Scheme, including format,
mode, procedure and processes in respect of the following, namely: (i) service of the
notice, order or any other communication; (ii) receipt of any
information or documents from the person in response to the notice, order or
any other communication; (iii) issue of
acknowledgment of the response furnished by the person; (iv) provision of
"e-advance rulings" facility including login account facility,
tracking status of eadvance rulings proceedings, display of relevant details,
and facility of download; (v) accessing,
verification and authentication of information and response including documents
submitted during the e-advance rulings proceedings; (vi) receipt, storage and
retrieval of information or documents in a centralised manner; and (vii) general
administration and grievance redressal mechanism in the respective Boards for
advance ruling.E-Advance
Rulings Scheme, 2022