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2020 (12) TMI 1272 - AAR - Income TaxApplication for advance ruling u/s 245R - Whether application cannot be allowed if the question raised in the application is already pending before any Income-tax authority or Appellate Tribunal? - notice under section 143(2) was for scrutiny under computer aided scrutiny selection (CASS) and the only reason for selection was "refund claim" - HELD THAT:- The applicant has categorically stated that neither the notice under section 142(1) of the Act nor any questionnaire was received prior to the filing of the present application. AO might have examined all the aspects, including the issues raised in the present application, while examining the issue of "refund claim" for which the case was selected for scrutiny. But the fact remains that such issues were not raised by the AO before filing of the present application. In the absence of any specific question in respect of the issues raised in the present application, it cannot be concluded that the questions raised in the present application was already pending before the Income-tax authority. The general notice as issued in this case is found to be insufficient to attract the rejection of the application under clause (i) of the proviso to section 245R(2) of the Act. In the present case the notice was issued in a standard preprinted format and the specific issues as appearing in this application were not part of the said notice. The hon'ble Delhi High Court has also held in the case of Sage Publications Ltd., U.K. [2016 (9) TMI 299 - DELHI HIGH COURT] that issue of notice under section 143(2) even prior to filing of application before the Authority for Advance Rulings, ipso facto would be insufficient to attract automatic rejection of the said application under the proviso to section 245R(2) of the Act and the special leave petition filed against this decision was dismissed by the apex court. Thus the notice under section 143(2) was issued in response to computer aided scrutiny selection reason of "refund claim". The specific question in respect of strategic alliance agreement entered into by the applicant with PVR was never raised by the Assessing Officer in any of the notices or the questionnaire issued before the filing of the present application. As held by the hon'ble court such notice cannot attract the automatic rejection route under clause (i) of the proviso to section 245R(2) of the Act as the questions raised in the present application are not found pending before the Income-tax authority.The application is admitted under section 245R(2).
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