Procedure for advance ruling.
258. (1) An applicant may make an application for seeking advance ruling, under this Chapter, stating the question on which the advance ruling is sought.
(2) The application shall be made in such form and manner and be accompanied by such fees as may be prescribed.
(3) An applicant may withdraw an application within a period of thirty days from the date of filing of the application.
(4) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the Commissioner and, if necessary, call upon him to furnish the relevant records.
(5) The Authority may, after examining the application and the records called for, by an order in writing, either allow or reject the application.
(6) No application shall be rejected under sub-section (5) unless an opportunity of being heard has been given to the applicant and reasons for such rejection shall be given in the order.
(7) The Authority shall not allow the application where the question raised in the application—
(a) is already pending before any income-tax authority, Appellate Tribunal or any court;
(b) involves determination of fair market value of any property;
(c) relates to a transaction or issue which is designed prima facie for the avoidance of income-tax.
(8) Notwithstanding anything in sub-section (7), in the case of any person falling within the class of persons notified under section 256, the Authority may allow the application even if the question raised therein is pending before any income-tax authority or Appellate Tribunal.
(9) A copy of every order made under sub-section (5) shall be sent to the applicant and to the Commissioner.
(10) The Authority shall, in a case where an application is allowed under sub-section (5), pronounce its advance ruling on the question specified in the application, after examining such further material as may be placed before it by the applicant or the Commissioner or obtained by the Authority.
(11) The Authority shall, before pronouncing its advance ruling, provide an opportunity of being heard to the applicant or to the Commissioner.
(12) The Authority shall pronounce its advance ruling in writing within a period of six months of the receipt of the application.
(13) A copy of the advance ruling pronounced by the Authority, duly signed by the Members and certified in such manner as may be prescribed, shall be sent to the applicant and to the Commissioner, as soon as may be, after such pronouncement.
