9911796707
TMI Blog2020 (12) TMI 1272X X X X Extracts X X X X X X X X Extracts X X X X ..... It has entered into a strategic alliance agreement (SAA) dated April 21, 2015 with PVR Limited (PVR) whereby PVR has agreed to purchase 4DX equipment and license 4DX software and 4DX code from 4DX, and install, maintain, operate and exhibit the 4DX system etc. in a theatrical exhibition complex owned/controlled by PVR. 4DX was also to provide certain services to exhibitor relating to installation and maintenance of 4DX system. The applicant has filed the present application on November 22, 2019 raising in their following six questions : "(1) On the facts and circumstances of the case, whether the amount of consideration for offshore supply of 4DX equipment including 4DX motion chairs, 4DX control system, environmental effect system, air a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of the case, if the answer to question No. 3 is affirmative (i. e. the applicant is construed to have a permanent establishment in India under article 5 of the tax treaty, and/or a 'business connection' under section 9(1)(i) of the Act), then in view of article 7(1) of the tax treaty and/or Explanation (a) to section 9(1)(i) of the Act, to what extent is the amount of consideration received by the applicant for services mentioned in question No. 3 above, reasonably attributable to the operations carried out in India, and consequently what would be the sum taxable in India ? (5) On the facts and circumstances of the case, if the answer to question No. 3 is affirmative (i. e. the applicant is construed to have a permanent establi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd/or double taxation avoidance agreement. Thus, the questions for seeking advance rulings pertained to the issues which were already pending and were to be examined by the Assessing Officer during scrutiny. It was, therefore, contended that the application was liable for rejection under clause (i) of the proviso to section 245R(2) of the Act. 3. Shri S. K. Agarwal, learned authorised representative of the applicant, submitted that there was no dispute to the fact that the notice under section 143(2) was issued on September 22, 2019 which was prior to filing of the present application. He has drawn our attention to the said notice, a copy of which has been filed, and contended that the only issue for which the case was selected for scrutin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice under section 143(2) makes the questions raised in the present application "as already pending". The notice under section 143(2) was for scrutiny under computer aided scrutiny selection (CASS) and the only reason for selection was "refund claim". Thus, the reason for scrutiny selection does not indicate that the questions as raised in the present application were pending before the Assessing Officer. No evidence has been brought on record to establish that the Assessing Officer had sent any specific questionnaire in respect of the issues raised in the present application. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It mandates that the notice should specify the particulars of such claim, loss, exemption, deduction or relief. Turning to the notice issued in the instant case to the petitioner under section 143(2) of the Act, it is seen that it is in a standard preprinted format which merely states that 'there are certain points in connection with the return of income on which the Assessing Officer would like some further information'. The said notice fails to satisfy the particulars of claim of loss, exemption, deduction, allowance or relief as mandated by section 143(2)(i) of the Act. In any event the question raised in the applications by the petitioner before the Authority for Advance Rulings do not appear to be forming the subject matter o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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.
8. The application is admitted under section 245R(2) of the Act. The date of hearing will be intimated in the due course. X X X X Extracts X X X X X X X X Extracts X X X X
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