2013 (6) TMI 74 - ANDHRA PRADESH HIGH COURT

Order of AAR - Whether the hon'ble Authority for Advance Rulings, is required to pass a detailed reasoned order, while allowing (admitting) an application for advance ruling made under section 245Q of the Income-tax Act, 1961 and whether it is not substantial statutory compliance with the Authority for Advance Rulings to consider the question of bar under clauses (i) and (ii) of the first proviso to section 245R(2) of the Act at the time of pronouncing the ruling?

Held that:- The entire exercise to be undertaken by the Authority for Advance Rulings under the Act and the Rules for allowing the application is only to verify the records called for whether an advance ruling on the question specified in the application is required to be made or not. There is a clear dichotomy between the threshold stage of allowing the application for advance ruling and pronouncing of advance ruling. If the Authority for Advance Rulings admits the application for pronouncing an advance ruling recording of reasons at that stage is not at all required nor hearing is contemplated to the Commissioner or his authorised representative. Only on such admission before pronouncing its advance ruling hearing of the Commissioner or his authorised representative is provided if the Authority for Advance Rulings considers necessary to hear but not at the threshold stage of admitting the application. The questions are accordingly answered against the petitioners.

It is well settled that while exercising the jurisdiction under article 226 of the Constitution of India, if the High Court is of the opinion that there is no other convenient or efficacious remedy open to the petitioner, it will proceed to investigate the case on its merits and if the court finds that there is an infringement of the petitioner's legal rights, it will grant relief, otherwise relief should be rejected.

The petitioners failed to substantiate the infringement of legal right conferred on them under the statute while allowing the applications for advance ruling. The writ petitions are devoid of merit and are accordingly dismissed. - Decided against the revenue.