Advance Ruling

[Adarsh Gupta]

Hello,

In a AAR, an applicant asks two questions. One is answered in positive and one in negative for the applicant. Applicant decides to go in for appeal for question answered in negative only asks the appellate Authority to set aside/modify this question only. Can the appellate Authority go beyond the prayer and answer second question in negative as well?

Thanks.

[DR.MARIAPPAN GOVINDARAJAN]

If you go for appeal for the question decided negative, the Appellate Authority may confirm the negative order or set aside or modify the negative order. But he cannot pass order beyond the subject matter of appeal.

[Nash Industries I Pvt Ltd]

Either party can go for an appeal. So, please check and ensure before going for an appeal.

Your question is whether the appellate authority can uphold the order of the AAR. Yes. AAAR can modify, uphold or pass any other that he deems fit in respect for which the ruling has been sought for.

Regards

S.Ramaswamy

[KASTURI SETHI]

Doors are open for both. If the department feels aggrieved, and files an appeal against the first question answered in favour of assessee, AAAR can modify or set aside, otherwise not.

[Ganeshan Kalyani]

The opportunity to Appeal is equal for both assessee and the authority.

AI Summary

Appellate authority powers: can confirm, set aside, or modify only matters within the scope of the appeal.
The appellate authority may confirm, set aside, or modify only the portion of an advance ruling that is the subject matter of the appeal and cannot pass orders beyond that appealed subject matter. Separate questions in the original ruling remain outside the appellate decision unless they are specifically appealed. Either the taxpayer or the department may file an appeal, and the opportunity to appeal is equal for both.