TaxTMI 
TaxTMI 
2020 (8) TMI 770
X X X X Extracts X X X X
X X X X Extracts X X X X
....ce Rulings on the ground that it is in violation of the jurisdictional bar under proviso to Section 245R(2) of the Income Tax Act, 1961 (hereinafter referred to as the 'Act'). Petitioner also prays for a declaration to the effect that only the petitioner has the jurisdiction to deal with the case of respondent No. 2 [ Crocs Europe BV] and Respondent No. 1 has no jurisdiction to deal with the same. Petitioner further prays for a stay on the operation of the impugned order. The relevant portion of the impugned order is reproduced hereinbelow:- ".......It is vehemently urged before us that the question on which notice under Section 143(2) of the Act was issued was "taxable income shown in revised return is less than the taxable income....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ands of the petitioners at the time of actual receipt or otherwise. He argues that since the questions raised in the Application before the Respondent No 1 were already pending before the Assessing Officer, the Respondent No 1 was barred from assuming jurisdiction in view of the threshold bar enshrined in clause (i) under Proviso to section 245 R (2) of the Act. 4. Learned counsel further submits that the Authority for Advance Rulings is bound to follow the mandatory statutory procedure and if the entire record and notice alone had not been examined by it, then the conclusion of the Authority would have been different. He states that though the notice under Section 143(2) is in a standard pre-printed format, yet it is in accordance with ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... under Entry 49 List II. But the legislative authority of Parliament is not determined by visualizing the possibility of exceptional cases of taxes under two different heads operating similarly on tax payers. Again Entry 49 List II of the Seventh Schedule contemplates the levy of tax on lands and buildings or both as units. It is normally not concerned with the division of interest or ownership in the units of lands or buildings which are brought to tax. Tax on lands and buildings is directly imposed on lands and buildings, and bears a definite relation to it. Tax on the capital value of assets bears no definable relation to lands and buildings which may form a component of the total assets of the assessee. By legislation in exercise of pow....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sion ("Treaty") ? 6. Two Division Benches of this Court in Hyosung Corporation vs. Authority for Advance Rulings & Ors., (2016) 382 ITR 371 (Delhi) and Sage Publication Ltd. Vs. Deputy Commissioner of Income-Tax (International Taxation), (2016) 387 ITR 437 (Delhi) have held that a question cannot be said to be pending under Clause (i) of proviso to Section 245R(2) upon issuance of a mere notice under Section 143(2) of the Act, especially when it has been issued in a standard pre-printed format and the questions raised before the authority for advance ruling do not appear to be forming the subject matter of the said notice. This is also more so when the notice fails to satisfy the particulars of claim of loss, exemption, deduction, allowa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e (i) to proviso to Section 245R(2) of the Act, on the AAR entertaining and allowing the applications." B) Sage Publication Ltd. Vs. Deputy Commissioner of Income Tax (International Taxation) "It is evident on a plain reading of the notice that it does not address itself to any specific question; it does not even disclose application of mind to the returns save and except the fact that they conform to the instructions which compelled the Assessing Officer to issue a scrutiny notice on account of the international transaction reported by the assessee. The previous authority of this Court in Hyosung (supra) and L.S. Cable (supra) had the occasion to deal with identical notices. It was positively ruled that such notices ipso ....