Loading...

⚠ ✕
❮ Top
☎ Help
☰
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback✕

Contact Us At :

✉ E-mail: [email protected]

✆ Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters 0/2000
Make Most of Text Search ✕
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
╳
Add to...
You have not created any category. Kindly create one to bookmark this item!
✕
Create New Category
Hide
Title :
Description :
❮❮ Hide
❮ Default View
Expand ❯❯
Close ✕
🔎 Filters / Advanced Search ❯
TEXT

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In
Main Text + AI Text ❯
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws---- ❯
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ---- ❯
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
Relevance Default Date
    Case Laws Income Tax
    Retrospective Amendments and the Doctrine of Vested Rights: A Judicial Perspective
    Case Laws Income Tax
    Upholding Equality: HC Strikes Down Discriminatory Circular on Charitable Trust Approvals
    Case Laws Income Tax
    Judicial Review of Income Tax Settlement Commission (ITSC) Orders: Navigating the Boundaries
    Case Laws Income Tax
    Assessee's Lackadaisical Conduct Leads to Dismissal of Income Tax Appeal
    Case Laws Income Tax
    Navigating the Faceless Appeal Scheme: Lessons from the Judgement on Delayed Filing and Deduction u/...
    Case Laws Income Tax
    Unraveling the Maze of Round-Tripping: The Doctrine of "Source of Source" in Share Capital Transacti...
    Case Laws Income Tax
    Upholding the Transfer of Assessment Proceedings u/s 127: A Judicial Perspective
    Case Laws Income Tax
    Share Premium Addition u/s 68: Demystifying Share Premium Transactions
    Case Laws Income Tax
    Navigating the Intricacies of Income Tax Penalty u/s 271(1)(c): Fairness in Tax Administration
    Case Laws Income Tax
    Reassessment Proceedings: Navigating the Scope and Limitations under Income Tax Act
    Case Laws Income Tax
    Navigating the Complexities of Search and Seizure Assessments: Unraveling the Intricacies of Section...
    Case Laws Income Tax
    Interpreting Section 80G Provisions: ITAT's Stance on Charitable Institution Registration
    Case Laws Income Tax
    Interpreting the Scope and Limits of Sections 153A and 153C: A Judicial Perspective
    Case Laws Income Tax
    Section 153C and the Necessity of AO's Satisfaction: A Detailed Judicial Analysis
    Case Laws Income Tax
    Royalty or Business Income? High Court Clarifies Taxation of Remittances against Software Purchase
    Case Laws Income Tax
    Reassessment Proceedings: Navigating the Complexities
    Case Laws Income Tax
    Faceless Assessment of Income Escaping Assessment: Validity of Notice Issued by the Jurisdictional A...
    Case Laws Income Tax
    Court Upholds Deduction for Operational Hotel under Section 35AD Despite Administrative Delays
    Case Laws Income Tax
    Landmark Ruling: Leasing Businesses Entitled to Depreciation Benefits
    Case Laws Income Tax
    Court Decision on Convertible Debentures Expenses : Revenue or Capital Expenditure?
❮
❯
❯❯
Maximize Maximize Maximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

+

Are you sure you want to delete "My most important" ?

NOTE:

Notes
Showing Results for :
Reset Filters
Results Found:
Show All Summaries Hide All Summaries
Case Laws Income Tax
Show AI Summary
Vested rights preserved against retrospective tax amendments; filings made before enactment remain effective for settlement consideration.
The court addressed whether a retrospective Finance Act amendment prohibiting settlement applications from a specified date could divest a taxpayer who filed earlier of its vested right to have the application considered. It held that retrospective legislation cannot take away rights already accrued by actions completed before enactment unless clearly intended; that section 119 confers time-extension power but cannot impose new substantive eligibility conditions; and that administrative delay by revenue does not justify denying access where an application was already filed.
Case Laws Income Tax
Show AI Summary
Reasonable classification principle: differential deadline for charitable trust tax recognition cannot lack rational basis or equality protection.
A departmental circular extended a filing deadline for tax recognition to mitigate hardship but excluded newly formed charitable trusts without offering reasons; the exclusion lacked an intelligible differentia and rational nexus to the circular's object, making the differential treatment arbitrary and ultra vires the constitutional guarantee of equality, requiring the excluded applications to be treated as within time and decided on merits.
Case Laws Income Tax
Show AI Summary
ITSC jurisdiction extends beyond application disclosures, while full and true disclosure and narrow judicial review govern settlement oversight.
The Income Tax Settlement Commission may inquire into and decide issues disclosed in the application and any other matters relating to the case as reflected in the Commissioner's report or uncovered by further inquiry; full and true disclosure is mandatory and amendments or contradictory positions that undermine that requirement are impermissible, yet contesting taxability before the Commission does not automatically negate disclosure; judicial review is limited to statutory contravention, prejudice, fraud, bias or malice, while sufficiency of materials placed before the Commission is generally beyond routine court scrutiny.
Case Laws Income Tax
Show AI Summary
Delay condonation denied where litigant's evasive conduct and non participation failed to constitute sufficient cause for appeal filing.
The court refused condonation of delay for filing an appeal where a best judgment assessment treated cash bank deposits as unexplained after the assessee failed to file returns or participate in proceedings; reliance on transition to a faceless e filing regime and lack of alerts was held insufficient, as the assessee's evasive and habitual non participation did not amount to sufficient cause warranting condonation under the applicable doctrine.
Case Laws Income Tax
Show AI Summary
Sufficient cause for delay in filing appeals rejected where faceless scheme migration did not excuse prolonged inaction.
The court held that migration to a faceless appeal system did not, without persuasive evidence, constitute sufficient cause to condone a lengthy delay in filing an appeal, finding the explanation reflective of litigant inaction rather than unavoidable impediment. On tax deduction, the court applied authority that a non-obstante clause does not negate the employer's obligation to deposit employees' statutory contributions by the due date as a condition for claiming the deduction, and treated the appeal as meritless and barred by limitation.
Case Laws Income Tax
Show AI Summary
Source of source doctrine used to pierce the corporate veil where share capital appears round tripped among related entities.
The assessee must prove identity, genuineness and creditworthiness of investors under section 68; examination extends to the true origin of funds where bank records show circular transfers, related party directorships, lack of business operations, and arbitrary share premium, permitting lifting the corporate veil and application of the source of source doctrine to treat such receipts as not satisfactorily explained.
Case Laws Income Tax
Show AI Summary
Transfer of assessment proceedings for coordinated investigations and administrative convenience upheld where procedural safeguards and factual links exist.
The judgment explains that transfers of assessment proceedings pursuant to the statutory transfer power may be justified for coordinated enquiries and administrative convenience, provided the decision is not capricious or mala fide. Authorities must afford an opportunity to be heard and consider objections; where factual indicia exist - for example, disclosed transactions such as unsecured loans with searched persons - centralisation can be sustained. The convenience of the assessee is relevant but subservient to effective adjudication and tax collection, and transfers supported by procedural compliance and factual nexus are not arbitrary.
Case Laws Income Tax
Show AI Summary
Burden of proof in share premium cases: failure to prove investor identity and genuineness sustains addition under section 68.
The assessment of share premium under section 68 requires the assessee to prove the identity, creditworthiness and genuineness of investors who subscribe at a premium. The court scrutinised disparate allotments made on consecutive days, examined subscribing companies' financials, and applied the doctrine of "source of source" restrictively, holding that incorporation papers or bank payments alone do not discharge the burden. Absent cogent evidence tracing funds to lawful origin and demonstrating commercial rationale for large premiums, additions under section 68 are supportable.
Case Laws Income Tax
Show AI Summary
Strict construction of penalty provisions prevents penalty where taxpayer disclosed omitted income before assessment notice.
The legal focal point is whether Section 271(1)(c) can be invoked where an assessee disclosed omitted income and paid differential tax before initiation of reassessment. Penal provisions require strict construction, and Explanation 1 treats a pre-notice satisfactory explanation and admission of additional income as accepted, precluding characterization as concealment. Additionally, a penalty notice must specify the particular ground for proceeding; failure to do so renders the notice defective and undermines the basis for penalty.
Case Laws Income Tax
Show AI Summary
Scope of reassessment: AO may address newly noticed income but remains constrained by the recorded reasons for reopening.
Where the AO has recorded reasons to believe income escaped assessment, the AO may assess or reassess issues that come to notice during reassessment, but if no additions or modifications are ultimately made in respect of the issues that formed the basis for reopening, the AO cannot make additions or modifications relating solely to other matters that were part of the original assessment. Explanation 3 applies only after reassessment power is validly invoked and cannot be used to deviate from or supplant the recorded reasons.
Case Laws Income Tax
Show AI Summary
Corroboration requirement for search statements: unsupported search statements cannot sustain additions without linked incriminating material and fair cross examination.
Additions for alleged accommodation entries cannot rest solely on statements recorded during search operations; such statements require corroboration by material found in the search that is specifically linked to the assessee. The assessing officer must articulate a factual nexus between seized group material and the assessee, and procedural fairness-including provision of relevant statements and opportunity for cross-examination-is essential. Cure provisions do not validate jurisdictional defects arising from absence of requisite notice or lack of incriminating material.
Case Laws Income Tax
Show AI Summary
Registration under Section 80G: provisional approval permits subsequent final registration regardless of prior commencement of activities.
The Tribunal held that institutions granted provisional approval under the First Proviso to Section 80G(5) are entitled to apply for final registration under the proviso's final-registration clause, and that the relevant date of commencement is to be counted from activities undertaken after grant of provisional registration; a prior commencement of activities before provisional grant cannot alone justify rejection of a final-approval application.
Case Laws Income Tax
Show AI Summary
Search assessment provisions under Sections 153A and 153C override ordinary reassessment time limits; asset-threshold verification required.
The judgment holds that search-triggered assessment provisions function as non-obstante clauses displacing ordinary reassessment time limits, distinguishes the enduring liability to tax from the temporal right to assess, prescribes that block periods are computed from the year of search (or date of receipt of seized records for non-searched persons), and treats the asset-represented income threshold as a mandatory, aggregable precondition requiring the assessing officer's recorded satisfaction.
Case Laws Income Tax
Show AI Summary
Seized-material nexus under Section 153C: AO must form reasoned satisfaction before reopening assessments for specific years.
Section 153C requires the Assessing Officer to form a reasoned satisfaction that seized material during a search has a bearing on an assessee's total income before initiating assessments; mere discovery is insufficient, and the AO must identify specific assessment years, map incriminating material year-wise, and record reasons to justify abatement or reopening.
Case Laws Income Tax
Show AI Summary
Royalty classification of software payments: remittances for software purchases are not treated as royalty under established precedent.
Where distribution agreements or End User License Agreements do not grant any proprietary interest or a right to use copyright, payments for acquiring computer software are not to be characterised as royalty; this conclusion follows controlling precedent and DTAA considerations and renders an Assessing Officer's contrary classification inconsistent with the correct legal interpretation.
Case Laws Income Tax
Show AI Summary
Reopening assessments: procedural compliance and substantive escapement requirements determine validity of reassessment notices.
The judgment examines validity of notices under Section 148, holding that TOLA does not apply retrospectively for the assessment year at issue and notices issued after the statutory cutoff cannot be back-dated. Notices barred by the limitation in Section 149(1) are ineffective. Procedural prerequisites - notably issuance of a Document Identification Number and issuance through automated allocation by the faceless centre rather than direct action by the Jurisdictional Assessing Officer - are mandatory. Substantively, reopening requires escapement of income in the form of an asset, expenditure, transaction, event, or book entry; a mere change of opinion or dispute over an ordinarily allowed deduction does not meet that threshold.
Case Laws Income Tax
Show AI Summary
Faceless assessment: issuance of section 148 reopening notices by jurisdictional assessing officers inconsistent with faceless regime.
The faceless assessment framework under Section 151A and the Scheme dated 29 March 2022 allocates exclusive jurisdiction to either the Faceless Assessment Officer or the Jurisdictional Assessing Officer for issuance of reopening notices and assessments; actions by an authority outside its assigned jurisdiction are inconsistent with the faceless regime and cause prejudice to the taxpayer as a matter of law.
Case Laws Income Tax
Show AI Summary
Deduction eligibility for operational hotels affirmed despite administrative delay in star classification, focusing on substantive compliance.
The court addressed entitlement to a deduction under Section 35AD(5)(aa) where a hotel began operations and generated income in the relevant year and a timely application for star classification was submitted, but formal certification was delayed due to administrative inspections; the court applied a purposive construction to allow the deduction when substantive operational conditions were satisfied and delay was not the assessee's fault.
Case Laws Income Tax
Show AI Summary
Depreciation entitlement for leasing companies where contractual ownership and business use are established, allowing higher depreciation rates.
A lessor retains entitlement to depreciation where lease terms demonstrate exclusive ownership rights, repossession power, return obligations and inspection rights, and where the asset is used in the course of the lessor's leasing business; actual physical use by the lessor is not required. Leasing activity that functionally equates to hiring can qualify assets for an enhanced rate of depreciation despite registration in the lessee's name.
Case Laws Income Tax
Show AI Summary
Revenue classification of debenture issuance expenses upheld as revenue expenditure despite later conversion into equity.
Expenses incurred to issue convertible debentures that are raised to provide working capital are to be treated as revenue expenditure because classification depends on the purpose and usage of the expenditure, and future conversion into shares does not change its revenue character.

TMI Notes

Back

All TMI Notes

Showing Results for :
Reset Filters
No Records Found

TMI Notes

Back

All TMI Notes

Comparison of section 384 "Procedure on receipt of application." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

13 September, 2025

Contents
Acts
Rules & Regulations
Summary
Note

Note

-

Bookmark

Print

Print

Section 384 Procedure on receipt of application

Income-tax Act, 2025

At a Glance

Clause 384 of the Income Tax Bill, 2025 sets out the procedure to be followed by the Board for Advance Rulings (BAR) on receipt of an application for an advance ruling. It prescribes steps for forwarding the application, calling records, grounds for rejection, hearing rights, timelines for pronouncement, and transmission of orders. The provision affects applicants seeking advance rulings (taxpayers or their authorised representatives) and the income-tax administration (Principal Commissioner/Commissioner and the Board). Effective date or enactment timing: Not stated in the document.

Background & Scope

Statutory hooks: Clause 384 (Income Tax Bill, 2025) - Procedure on receipt of application; cross-references to sections 380 and 515(3)(a). The clause concerns the Board for Advance Rulings' processing of applications and its interaction with the Principal Commissioner or Commissioner. Definitions: "authorised representative" is defined by reference to section 515(3)(a) "as if the applicant were an assessee." No further definitional material or legislative history is provided in the text.

Statutory Provision Mode

Text & Scope

Clause 384 (Old Version) prescribes the procedure on receipt of applications to the Board for Advance Rulings (the Board). The Board must forward a copy of the application to the Principal Commissioner or Commissioner and call for relevant records. After examining the application and the records, the Board may either allow or reject the application by order. The provision outlines circumstances under which an application shall be rejected, requires an opportunity of being heard before rejection, details transmission of orders and rulings, sets a six-month time-frame for pronouncing advance rulings once an application is allowed, and provides for a hearing on request. It also prescribes transmission and certification formalities for the advance ruling and defines "authorised representative" by reference to section 515(3)(a) as if the applicant were an assessee.

Interpretation

The text indicates a statutory scheme designed to: (i) ensure engagement between the Board and the field taxation functionary (Principal Commissioner/Commissioner) through mandatory transmission of the application and records; (ii) limit the Board's jurisdiction to matters not already under adjudication with other income-tax authorities/Appellate Tribunal/court, or matters involving valuation or apparent tax-avoidance designs, subject to specified exceptions; (iii) guarantee procedural fairness by mandating an opportunity to be heard and provision of reasons where the Board rejects an application; and (iv) require prompt disposition by mandating a six-month limit for issuing a ruling once the application is allowed. The reference to "as may be prescribed" in relation to certification points to delegated legislation for procedural particulars.

Exceptions/Provisos

Clause 384(3) identifies three grounds for mandatory rejection (subject to the enumerated exceptions):

  • (a) The question is already pending before any income-tax authority or Appellate Tribunal except in the case of a resident applicant falling in section 380(b)(iv) or any court.
  • (b) The question involves determination of fair market value of any property.
  • (c) The question relates to a transaction or issue which is designed prima facie for the avoidance of income-tax except in the case of a resident applicant falling in section 380(b)(iv) or in the case of an applicant falling in section 380(b)(v).

Clause 384(4) prevents rejection without giving the applicant an opportunity to be heard and requires reasons for the rejection to be recorded in the order. Clause 384(6) imposes a six-month limit for pronouncing an advance ruling "after examining such further material" as may be placed or obtained. Clause 384(7) allows the Board, on request, to provide an opportunity of being heard in person or through a duly authorised representative. Clause 384(8) requires a signed and prescribed-certified copy of the ruling to be sent to the applicant and the Principal Commissioner/Commissioner.

Illustrations

  • Example 1: An applicant files for an advance ruling on a transaction. The Board forwards the application to the Principal Commissioner, calls for records, and finds no pending proceedings on the question. The application is allowed; the Board requests additional documents, examines them and pronounces a ruling within six months, sending certified copies to the applicant and Principal Commissioner. (Consistent with text.)
  • Example 2: An applicant seeks a ruling on valuation of a property. The Board rejects the application on the ground that it "involves determination of fair market value of any property." Before issuing the rejection order, the Board offers an opportunity of being heard and records reasons for rejection in the order, which is then sent to the applicant and Principal Commissioner. (Consistent with text.)
  • Example 3: An applicant raises a question already pending before an income-tax authority. The Board may reject the application under Clause 384(3)(a), unless the applicant qualifies under the exception in section 380(b)(iv). (Consistent with text.)

Interplay

Clause 384 cross-refers to section 380(b) and to section 515(3)(a). The exact scope and effect of the exceptions hinge on the content of section 380(b) (sub-clauses iv and v in the Old Version) and the definition in section 515(3)(a). Clause 384 also contemplates delegated detail through "as may be prescribed" and "in the manner, as prescribed" for certification and formality, indicating subordinate rules or regulations will supplement procedural specifics. No other statutes, rules or circulars are identified in the text.

Differences between the two provisions and practical impact

  • References to sub-clauses of section 380: The final Section 384 (Document 1) substitutes the cross-references in sub-sections (3)(a) and (3)(c) from the Bill's earlier references. Document 2 (Clause 384, Old Version) uses references to section 380(b)(iv) and 380(b)(v) in the exceptions; Document 1 (Section 384) instead refers to section 380(b)(iii) and 380(b)(iv) in corresponding places.
    • Practical impact: The change alters which categories of applicants (as defined in the various sub-clauses of section 380(b)) benefit from the exceptions to rejection. The practical effect depends entirely on the substantive content of the cross-referenced sub-clauses of section 380(b), which is not reproduced here. Therefore, any concrete statement about who gains or loses eligibility cannot be made from these texts alone. (Not stated in the document: the substantive identities of 380(b)(iii), (iv) and (v).)
  • Drafting and stylistic differences: Minor variations in drafting appear in the language of sub-section (4) (placement and slight rewording of "opportunity of being heard"), sub-section (7) (ordering of words "provide an opportunity of being heard to the applicant" vs "provide an opportunity to the applicant of being heard"), sub-section (8) (phrase "certified in such manner, as may be prescribed" vs "certified in the manner, as prescribed"), and sub-section (9) (opening phrase "For the purposes of this section" vs "In this section").
    • Practical impact: These are stylistic and do not, on their face, change substantive rights or procedures. They may, however, reflect finalisation of legislative drafting. No change to timelines, appellate pathways or duties of the Board are expressed by these wording variations.
  • Other substantive provisions: The core procedural framework-forwarding the application to Principal Commissioner or Commissioner, calling for records, power to allow or reject after examination, requirement of statement of reasons and hearing before rejection, six-month period for pronouncing the ruling, opportunity of hearing on request, transmission of the ruling to applicant and Principal Commissioner/Commissioner, and definition of "authorised representative"-remains in both texts.
    • Practical impact: The continuity of these substantive provisions indicates the Bill's older version and the final section share the same procedural mechanics; the only operative substantive divergence shown in the two texts arises from the altered cross-references to section 380(b).

Practical Implications

  • Compliance and risk areas: Applicants must be vigilant about concurrent proceedings. If the question is pending before any income-tax authority or Appellate Tribunal (subject to specified exceptions), the Board must reject the application. Applicants should assess whether their category fits within the cited exceptions u/s 380(b) before filing. (Not stated in the document: the precise content of section 380(b)(iv)/(v) and how they apply to distinct applicants.)
  • Record-keeping/evidence points: The Board's power to call for "relevant records" and the ability to ask for "further material" implies applicants should maintain comprehensive documentary records and be prepared to submit them promptly. The requirement to forward the application to the Principal Commissioner/Commissioner and to send certified copies of orders/rulings to that officer underscores the need to preserve records that may be examined by routine assessing authorities.

Key Takeaways

  • Clause 384 sets out the Board's procedural obligations on receipt of an application for advance ruling: transmission to the Principal Commissioner/Commissioner, calling for records, and power to allow or reject after examination.
  • Mandatory grounds for rejection include matters pending before income-tax authorities/Tribunal/court, fair market value determinations, and transactions that appear prima facie tax-avoidance, subject to specified exceptions linked to section 380(b).
  • Rejection cannot be issued without providing an opportunity of being heard and recording reasons in the order.
  • If allowed, the Board must pronounce the advance ruling in writing within six months of receipt of application, after considering further material if any.
  • Applicants may request a hearing in person or through an authorised representative; "authorised representative" is defined by reference to section 515(3)(a).
  • Certified, signed copies of orders and rulings must be sent to the applicant and to the Principal Commissioner/Commissioner; details of certification and procedural formality are left to prescription.
  • The Old Version's practical differences from the final section consist principally of altered cross-references to sub-clauses of section 380(b) and minor drafting variations; the substantive procedural architecture remains consistent.

Full Text:

Section 384 Procedure on receipt of application

Topics

Acts Income Tax