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
    Intricacies of Taxation on Interconnect Charges in Telecom: Unraveling the Concept of 'Use or Right ...
    Case Laws Income Tax
    The Principle of Mutuality in Taxation: A Comprehensive Analysis of a Landmark Supreme Court Decisio...
    Case Laws Income Tax
    Landmark Income Tax Reassessment Case
    Case Laws Income Tax
    A Legal Dissection of Best Judgment Assessments in Tax Law, in the context of Sections 153A/153C in ...
    Case Laws Income Tax
    Complexities of Residential Status and Tax Liability
    Case Laws Income Tax
    Navigating International Taxation Waters
    Case Laws Income Tax
    Deduction u/s 80P: Navigating the Legal Labyrinth - Co-operative Societies Vis-a-vis Co-operative ba...
    Case Laws Income Tax
    Navigating Legal Complexities - Assessment in case of third parties post search and seizure - The pe...
    Case Laws Income Tax
    Scope of compliance of the Document Identification Number (DIN) in tax communications​​.
    Case Laws Income Tax
    Navigating the Nuances of Capital vs Revenue Expenditure: The Asian Hotels Ltd. Case Analysis
    Case Laws Income Tax
    Tax Credit Entitlement - Credit of TDS if deductor failed to deposit the TDS to the Government
    Case Laws Income Tax
    A Landmark Judgment on Tax Credit Entitlement - Credit of TDS if deductor failed to deposit the TDS ...
    Case Laws Income Tax
    Validity of reopening of assessment - need for a direct link between the portal's information and th...
    Case Laws Income Tax
    Disallowance of expenses - need for tax authorities to have a practical understanding of the nature ...
    Case Laws Income Tax
    Disallowance of the assessee's business expenditure claims related to the purchase of sugarcane from...
    Case Laws Income Tax
    Additions made u/s 69 and Section 56 in the absence of direct incriminating evidence linking the ass...
    Notifications Income Tax
    Manner of disposal of application for advance ruling under Income Tax Act, 1961
    Manuals Income Tax
    Computation of Turnover for the purpose of tax audit u/s 44AB - Speculation Business or Derivatives,...
    Act Rules Income Tax
    Income deemed to accrue or arise in India - Section 9
    Act Rules Income Tax
    Current Repairs - ‘Nature & Treatment’ of expense
❮
❯
❯❯
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
Use or right to use: interconnect charges not treated as royalty under treaty because no transfer of use of IP.
The core question was whether interconnect usage charges fall within royalty by virtue of conferring the use or right to use a process or equipment. The tribunal held that IUC did not amount to royalty because the telecommunications processes were standard industry practice, not proprietary or secret, and therefore did not grant a transferable right to exploit intellectual property; treaty interpretation under the DTAA controlled characterization.
Case Laws Income Tax
Show AI Summary
Principle of mutuality: interest on clubs' bank deposits treated as commercial income and not mutuality-exempt.
The Court analysed whether investing clubs' surplus funds in bank fixed deposits preserved the identity between contributors and beneficiaries required by the Principle of Mutuality. It found that such investments diverted funds into commercial dealings with third parties and were not applied directly for members' mutual services, thereby breaking mutuality. As a result, interest earned on those investments did not qualify as exempt mutual receipts and was treated as taxable income.
Case Laws Income Tax
Show AI Summary
Reassessment notice limitations restrict tax authorities when issued beyond limitation or without mandated approval or procedural defects.
A reassessment issued after the three year limitation period and without approval from the specified authority fails statutory prerequisites and cannot sustain reassessment. Reassessment powers are limited to non disclosure or material misstatement of facts in the original assessment and do not extend to changes of opinion. TOLA 2020 does not expand substantive reassessment powers or alter approval requirements, and correct classification of expenses as capital or revenue remains central to tax consequence determinations.
Case Laws Income Tax
Show AI Summary
Best judgment assessment standards tightened when linked to search-and-seizure reassessments requiring documented satisfaction and DIN compliance.
Best judgment assessment under Section 144 is examined alongside Sections 153A and 153C, stressing that invocation of Section 144 must be grounded in the legitimate scope opened by search-related reassessments. The court emphasises that the Assessing Officer's satisfaction note must be substantively supported, administrative formalities such as a Document Identification Number must be complied with, and that extensions of assessment periods require concrete evidentiary justification.
Case Laws Income Tax
Show AI Summary
Residential status: extended employment definition can preserve non-resident tax status for cross-border business migrants abroad.
The tribunal addressed whether an individual who stayed 176 days in India and then moved to Mauritius on an occupation permit qualified as non-resident under Explanation 1(a) to the residence provision; after reviewing the occupation permit and appointment documentation and relying on precedent that construes "employment" to include self-employment and business activity, the tribunal found the explanatory extension applicable and excluded offshore receipts from Indian taxation.
Case Laws Income Tax
Show AI Summary
Section 172 shipping reimbursements govern TDS treatment, displacing Section 195 withholding for cross border damage payments.
The core operative finding is that cross border payments characterised as reimbursements for vessel damage fall within the specialised shipping income regime under Section 172, so the general non resident withholding approach under Section 195 (and higher rates applied due to documentation gaps under Section 206AA) was not the appropriate mechanism; classification by legal character governs the applicable withholding treatment.
Case Laws Income Tax
Show AI Summary
Co-operative bank classification: licensing requirement determines cooperative societies' tax deduction eligibility under section 80P provisions.
Eligibility for deduction under Section 80P depends on whether a cooperative society qualifies as a co-operative bank, which in turn requires evaluation of statutory definitions and the regulatory requirement of licensing under the Banking Regulation Act read with the NABARD Act and state cooperative laws; classification hinges on regulatory status and banking activity rather than merely providing credit to members.
Case Laws Income Tax
Show AI Summary
Interpretation of Section 153C limits third party assessment timelines to when seized materials reach the Assessing Officer.
The Supreme Court held that, for third parties found via search and seizure, the period for which returns must be filed is measured from the date seized materials are forwarded to the relevant Assessing Officer rather than from the date of the original search. The Court read Sections 153A and 153C to avoid unduly prejudicing uninvolved third parties and to prevent excessive record-retention and procedural burden, endorsing a fair, plain-language construction aligned with legislative intent.
Case Laws Income Tax
Show AI Summary
DIN compliance: omission of Document Identification Number can render tax orders procedurally noncompliant under CBDT Circular.
The dispute focuses on whether omission of the Document Identification Number (DIN) from a substantive tax order, despite issuance of an intimation letter containing the DIN, renders the communication noncompliant with CBDT Circular No.19/2019; the Tribunal treated a DIN-less order as deficient, rejected the revenue's rectification attempts and allowed relief to the assessee, while the High Court found no substantial question of law warranting interference, underscoring strict procedural adherence in tax communications.
Case Laws Income Tax
Show AI Summary
Renovation and consultancy expenses for hotels treated as revenue when they preserve existing assets without creating enduring capital benefits.
Classification of renovation and related consultancy expenses turns on whether works create a new asset or an enduring capital advantage. Expenditure that preserves existing condition, maintains competitiveness, or restores assets without materially improving life or efficiency is revenue in nature. Consultancy fees aligned with such maintenance are treated as revenue expenditure rather than capital outlay.
Case Laws Income Tax
Show AI Summary
TDS credit entitlement affirmed: deductee entitled to credit despite deductor's non-deposit, preventing indirect recovery.
Credit for tax deducted at source on interest payments is to be treated as tax paid on the deductee's behalf and does not depend on the deductor's remittance; statutory protections against indirect recovery prevent the revenue from seeking the same tax from the deductee when the deductor fails to deposit the deducted amount, and the deposit requirement in the applicable provisions does not negate the deductee's entitlement to such credit.
Case Laws Income Tax
Show AI Summary
Tax credit for TDS: deductee entitled to credit even if deductor failed to deposit the retained tax with government.
The Court treats amounts retained by a deductor as remaining tax and concludes the statutory credit mechanism for tax deducted at source does not condition a deductee's entitlement on the deductor having deposited the retained amount with the government, thereby barring indirect recovery or adjustment against the deductee where tax has been deducted at source.
Case Laws Income Tax
Show AI Summary
Use of portal data: digital information needs a direct evidential link before reopening income tax assessments.
Reopening assessments requires a direct evidential link between portal-derived information and the income alleged to have escaped assessment; portal data alone is insufficient without documentary support for transactions or gifts, and a show cause notice must provide adequate particulars and reflect proper consideration of the taxpayer's response before reassessment proceeds.
Case Laws Income Tax
Show AI Summary
Disallowance of expenses must rest on specific documentation defects, not on blanket percentage adjustments.
Disallowance of business expenses on a summary or estimate basis requires specific, pointed deficiencies and cannot rest on generalized conclusions about excessiveness; in businesses with routine small transactions, tax authorities must examine the nature of operations and identify particular defects in documentation before applying blanket percentage disallowances.
Case Laws Income Tax
Show AI Summary
Statutory Minimum Price interpretation: excess cane payments treated as appropriation of profits, not deductible business expense.
The core issue is whether payments for sugarcane in excess of the Statutory Minimum Price (SMP) are deductible business expenditures or constitute an appropriation of profits. The Assessing Officer relied on standard accounting practice requiring provisions for liabilities at year end and treated post closing excess payments as distributions of operational surplus. The appellate view upheld that cooperative status does not alter the tax analysis and that payments beyond the SMP do not qualify as allowable business expenses absent proper provisioning within the accounting period.
Case Laws Income Tax
Show AI Summary
Direct incriminating evidence requirement: third party search materials alone cannot sustain unexplained investment additions.
Additions alleged as unexplained investments and undisclosed interest income based on third party search materials require a demonstrable direct nexus between those seized records and the assessee; absent such direct incriminating evidence, reliance on third party statements or documents is insufficient. Procedural safeguards and transactional indicia-such as cross examination opportunities, banking records, documentary support, and TDS-reduce the probative value of seized material when direct linkage is lacking.
Notifications Income Tax
Show AI Summary
Majority decision with third member nomination resolves member disagreements in advance ruling panels, enabling electronic pronouncement and communication.
Amendments to the e advance rulings Scheme require the Board for Advance Rulings to consider responses, provide an opportunity of being heard by video conferencing or video telephony, pronounce the advance ruling and send it to the applicant and relevant authority. If Members differ on any point, the Principal Chief Commissioner (International Taxation) will nominate a Member from another Board and the majority opinion, including the nominated Member, will prevail in deciding the disputed point or points.
Manuals Income Tax
Show AI Summary
Turnover computation for derivatives and speculation: include absolute differences and option premiums under tax audit rules.
Turnover for tax audit purposes differs by transaction type: speculative transactions use the aggregate of realised favourable and unfavourable differences; derivatives, futures and options use the absolute total of favourable and unfavourable differences with option premium included unless already counted in net profit; reverse trade differences are included; delivery based transactions use total sales value as turnover.
Act Rules Income Tax
Show AI Summary
Income deemed to accrue in India when linked to an Indian business connection, property, services, or specified payments.
Section 9 deems income arising outside India to accrue in India where it is derived directly or indirectly from a business connection in India, from property or a source of income in India, or from transfer of a capital asset situated in India. It also treats salary for services rendered in India, government-paid salary to Indian citizens for foreign services, dividends by Indian companies to non-residents, and specified interest, royalties and technical fees (subject to exceptions based on use outside India) as deemed to accrue in India. Gifts by residents to non-residents after 5 July 2019 are similarly deemed.
Act Rules Income Tax
Show AI Summary
Current repairs classification distinguishes capital expenditure from revenue deductions for building and machinery repairs under income tax rules.
Classification of current repairs determines whether expenditures on buildings and on plant and machinery are revenue deductions or capitalised: enduring benefit or substantial enhancement is capital, while routine restorative or replacement outlays that merely maintain existing earning capacity are revenue; Sections 30 and 31 provide the statutory context for rent, rates, taxes, repairs and insurance for buildings and for machinery, plant and furniture.

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