Case Law Details
In Re Wave Field Inseis ASA (AAR)- When this Authority took the view in Monte Harris and other cases that the date of the filing of the application before the Authority should be the crucial date for determining the question of the applicability of clause (i) of the proviso to section 245R(2) of the Act and not the date when the application comes up for hearing either under section 245R(2) or under section 245R(4) of the Act, the Authority was searching for a definite and consistant terminus a quo. This Authority felt that the period could not be left to the vagaries of the progress of the application before this Authority or the vicissitudes of procedure. We think that the same principle should be applied to the other limb of the proviso. That can be achieved only by fixing the point at the filing of a return of income by the applicant and not the vagaries of the Income-tax authority issuing a notice or on the date of that notice. The Assessing Authority has a period of one year to issue a notice under any one of the provisions, and the starting point could not be made to depend on his issuing a notice or on his not issuing a notice at all. After all, while filing a return, a person is expected to be honest and is expected to set out all information truthfully even if he is of the view that an item of income derived is not chargeable to tax or is not chargeable to tax in this country. By filing a return, that person is inviting the Assessing Officer to decide the question for him and that makes the question pending before the income-tax authority. Then clearly, the bar under clause (i) of the proviso to section 245R(2) of the Act would be attracted.
AUTHORITY FOR ADVANCE RULINGS (INCOME TAX)
NEW DELHI
2nd Day of February, 2012
A.A.R. No. 951 of 2010
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