AAR Ruling is binding despite contrary Ruling: Bombay High Court

The Prudential Assurance Company Vs DIT (Bombay High Court) AAR rulings are binding despite contrary rulings of AAR. Assessment order following binding precedent is not amenable to s. 263 revision. The assessee, a FII based in UK, applied for an advance ruling on whether the profits arising to it from purchase and sale of Indian securities was “business profits” and whether in the absence of a ‘permanent establishment’ in India, the said profits were chargeable to tax under the India-UK DTAA. The AAR issued a ruling dated 30.4.2001 holding that the profits were “business profits” a...