Amendment of section 245N
44. In section 245N of the Income-tax Act,—
(i) in clause (a),––
(I) sub-clause (iv) shall be omitted;
(II) after sub-clause (iii), the following sub-clause shall be inserted with effect from the 1st day of April, 2015, namely:-
“(iv) a determination or decision by the Authority whether an arrangement, which is proposed to be undertaken by any person being a resident or a non-resident, is an impermissible avoidance arrangement as referred to in Chapter X-A or not:”;
(ii) in clause (b),––
(I) sub-clause (iiia) shall be omitted;
(II) in sub-clause (iii), for the word ‘‘or’’ occurring at the end, the word ‘‘and’’ shall be substituted;
(III) in sub-clause (iii), for the word ‘‘and’’ occurring at the end, the word ‘‘or’’ shall be substituted with effect from the 1st day of April, 2015;
(IV) after sub-clause (iii), the following sub-clause shall be inserted with effect from the 1st day of April, 2015, namely:—
“(iiia) is referred to in sub-clause (iv) of clause (a); and”.
Notes on Clauses:
Clause 44 of the Bill seeks to amend section 245N of the Income-tax Act relating to definitions in context of Advance Ruling. It is proposed to omit sub-clause (iv) in clause (a) of the said section. It is also proposed to omit sub-clause (iiia) in clause (b) of the said section.
These amendments will take effect retrospectively from 1st April, 2013.
It is proposed to insert sub-clause (iv) in clause (a) in the said section to empower the Authority for Advance Rulings to determine whether an arrangement which is proposed to be undertaken by any person whether resident or non-resident is an impermissible avoidance arrangement as referred to in Chapter X-A or not. It is further proposed to amend clause (b) of the said section in order to provide that definition of applicant includes a person making an application to the authority for determination of whether an arrangement is an impermissible avoidance arrangement or not.
These amendments will take effect from 1st April, 2015.
