GKW Limited Vs Board for Advance Rulings & Ors (Calcutta High Court)
GKW Limited filed a writ petition before the Calcutta High Court challenging the non-consideration of its application submitted in Form under Section 245Q of the Income Tax Act, 1961. The petitioner sought an advance ruling from the Board for Advance Rulings (BAR) regarding the taxability of certain transactions conducted in a joint venture with another entity. The application was filed on February 26, 2025, but remained pending at the time of filing the writ petition.
The petitioner’s counsel, Mr. Basu, argued that the delay in obtaining the ruling prevented GKW Limited from filing the appropriate income tax return, emphasizing the need for expeditious disposal. According to Section 245R(6) of the Income Tax Act, 1961, the Board of Advance Rulings is mandated to render its ruling within six months of receipt of the application.
The court noted a letter dated April 17, 2025, from the Secretary of the Board of Advance Rulings, which indicated that the petitioner’s application was received by the Board on that date. Recognizing that sufficient time had elapsed since receipt and considering the petitioner’s concern regarding the deadline for filing a revised return by December 31, 2025, the Calcutta High Court requested the Board to dispose of the application expeditiously. The Court suggested that the ruling be issued preferably within two weeks from the communication of the order.
