2004 (4) TMI 5

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nbsp; Mr. S. Lahiri, Commissioner of Incomed-tax-I Chennai.  Present for the Applicant  Mr. V. Ramachandran, Sr. Advocate & others  RULING (By Mr. Justice Syed Shah Mohammed Quadri) - In this case, the applicant filed application under section 245Q(1) of the Income-tax Act, 1961 seeking advance ruling on the following question: "Whether on the facts and circumstanc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n and other benefits paid to Mr. Kohutek. 4. To appreciate the ground of rejection stated in the aforementioned order, it would be useful to refer to the provisions of Section 245N of the Act defining the expression 'advance ruling' in so far as it is relevant for our purpose. Clasue (ii) of the definition is in the following terms: (a) "advance ruling" means - (i) x x x x • a determ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sion "advance ruling". After the amendment a determination should relate to taxability of a non-resident arising out of a transaction which has been undertaken or is proposed to be undertaken by a resident applicant with such non-resident. Thus, it is evident that the advance ruling has to be in relation to the tax liability of a non-resident. Admittedly in this case the question in respect of whi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tely before such date, such ruling shall be binding on the persons specified in section 245S" A plain reading of the proviso discloses that in view of the aforementioned retrospective amendment of the definition of 'advance ruling', it saves the rulings already pronounced by the Authority before the date of passing of the Finance Act, 2003. We are afraid, no principle of the interpretation will....