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TMI Blog2012 (5) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs will be barred by clause (i) of the proviso to section 245R(2) of the Act and the application will have to be rejected. On an application made by the applicant therein before this Authority to review or reconsider the correctness of that view, after considering the relevant aspects pointed out, this Authority again reiterated its view. The correctness of this view so taken is again sought to be canvassed in this application and the other applications heard along with it containing similar fact situation. 2. The applicant before us filed its return of income under section 139(1) of the Act on September 30, 2009. The transactions based on which rulings on various questions are sought, was entered into on November 24, 2008. The applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der a statute, this Authority may have a jurisdiction to decline a ruling even when one of these clauses in the proviso is not attracted or one of them is not strictly satisfied (See the ruling in Microsoft (AAR/781/2008)-since reported in [2009] 310 ITR 408 (AAR)). 4. It is contended that the object of an Advance Ruling being to cut short the delay in dispute resolution as regards applicants who are eligible to apply, the bar enacted by the proviso to section 245R(2) of the Act must be strictly construed. It is also pointed out that the purpose is to attract foreign investment and keeping that in view, no applicant should be turned away by interpreting the proviso too widely and restricting the jurisdiction of this Authority. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e question before the Authority for Advance Rulings. When a return is filed, so many aspects arise out of that return. The question of computation of total income, of computation of the exemptions and exclusions, acceptance or non-accept- ance of an item of expenditure and ultimately the determination of charge- able income and the determination of the tax due, are all questions that arise. Therefore, filing of a return ushers in all these questions. By filing a return, an assessee invites an adjudication on all the questions arising out of that return. Sub-section (2) of section 245R only speaks of the question arising before the Authority. So if an answer to that question would be involved in the return filed or would arise out of the ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the Assessing Officer, by filing a return of income. The obligation to file a return can well be fulfilled after moving this Authority and the Assessing Officer will have to await a ruling by this Authority and take shelter under section 153 of the Act to complete the assessment. We may note that it could not be denied that the ruling this Authority will give, will also impact the return already pending when the application before this Authority was moved. It will then be impossible to say that the aspect does not arise out of the return filed. The question raised before us will be covered by that aspect. 9. When this Authority took the view in Monte Harris, In re [1996] 218 ITR 413 (AAR) and other cases that the date of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roviso to section 245R(2) of the Act would be attracted. 10. Just like our considering the date of hearing of the application under section 245R of the Act would make for uncertainty, the fixing of the date of notice under section 143(2)/142(1) of the Act by the income-tax authority as the starting point, would result in vagaries and to the use of different yardsticks to different applicants, it would depend on the diligence or non- diligence of the Assessing Officer, whether he had issued the notice before or after the application before this Authority has been filed and the nature of the notice. A jurisdiction cannot depend on such vagaries. It is, there- fore, necessary to have a fixed common point or event for determining the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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