Advance ruling procedure secures binding tax guidance with hearing rights, grounds for rejection, and mandatory communication.
Clause 384 requires the Board for Advance Rulings to forward applications to the Principal Commissioner or Commissioner, call for records, and after examination either allow or reject applications. Rejection must follow an opportunity to be heard and a reasoned order, and orders must be communicated to the applicant and tax authorities. Mandatory exclusions include pending proceedings, fair market value determinations, and transactions prima facie designed for tax avoidance; if allowed, the Board must examine further material, hear the applicant or authorised representative, and pronounce a written ruling within the prescribed time frame.