TMI Blog2012 (5) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... s including the ones raised before this Authority, the jurisdiction to give a ruling in the present application has to be held to be barred. - Application rejected. - 951 of 2010 - - - Dated:- 2-2-2012 - BALASUBRAMANYAN J. P. K., SHRIDHAR V. K., JJ. JUDGMENT Order 1. In our order in AAR No. 1009 of 2010 (SEPCO III Electric Power Corporation-since reported in [2012] 340 ITR 225 (AAR)), we had taken the view that if the applicant before this Authority had already filed a return of income involving the amount arising out of the identical transaction on which a question for our ruling is raised by filing an application under section 245Q(1) of the Income-tax Act, 1961, the application before the Authority for Advance Rulings w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so to section 245R(2) of the Act. The proviso, as we see it, divests this Authority of jurisdiction in cases where its jurisdiction could be invoked by a qualified applicant, in three situations. The first is when the question on which a ruling is sought, is already pending before any income-tax authority or Appellate Tribunal or any court. The second is when the question involves determination of fair market value of any property. The third is where the question relates to a transaction or issue which is designed prima facie for the avoidance of income-tax. When any one of those conditions is satisfied, obviously, this Authority has to decline jurisdiction and has to reject the application. Of course, as an authority constituted under a st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment is being completed and, hence, the question cannot be said to arise merely on the filing of a return. There- fore, on the filing of a return, the bar would not be attracted. The procedure now followed by the Income-tax Department on a return being filed, is explained in detail. 6. This Authority is a creature of the Income-tax Act. The provisions of the Act that create it and confer jurisdiction on it in certain matters, also restricts its jurisdiction or divests it of its jurisdiction in certain circumstances. One of the situations or circumstances, is when the question raised before it, has arisen before the income-tax authority. The question referred to in the proviso to section 245R(2) of the Act, is the question befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have dealt with some of the relevant aspects in our orders in SEPCO III [2012] 340 ITR 225 (AAR). 8. We have also referred to the relevant earlier rulings of this Authority and discussed them. What we understand from them is that the relevant date for considering the question is the date of filing of the application and that filing of a return prior to filing of the application for Advance Rulings would lead to a rejection of the application. Consistent with the purpose sought to be achieved, emphasized on behalf of the applicant, it is for an applicant, eligible in that behalf, to move this Authority at the earliest opportunity and not to wait until after it invokes the jurisdiction or is obliged to invoke the jurisdiction of the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity issuing a notice or on the date of that notice. The assessing authority has a period of one year to issue a notice under any one of the provisions, and the starting point could not be made to depend on his issuing a notice or on his not issuing a notice at all. After all, while filing a return, a person is expected to be honest and is expected to set out all information truthfully even if he is of the view that an item of income derived is not chargeable to tax or is not chargeable to tax in this country. By filing a return, that person is inviting the Assessing Officer to decide the question for him and that makes the question pending before the income-tax authority. Then clearly, the bar under clause (i) of the proviso to section 245R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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