The Central Board of Direct Taxes (CBDT) in its new notification notified the Establishment of Board for Advance Ruling (BAR) for Direct Taxes on February 6th 2023.
The CBDT in continuation of the notification to the Notification No. 96 of 2021, Extraordinary Part II, section 3, subsection (ii) and in pursuance of Para 4(2) of the e-Advance Rulings Scheme, 2022, made by the Central Government by Notification No. 7 of 2022, Extraordinary Part II, section 3, sub-section(ii), the CBDT established an office for the BAR.
In accordance with the notification, 3 Board for Advance Ruling has been set up with specifying the Income Tax Authority. According to the schedule, the BAR-I and BAR-II are headquartered in Delhi. Also each consists of 2 members and one secretary. And the BAR-III has its headquarters in Mumbai in which it also has 2 members and one secretary.
The notification further said that the BAR would have access to any additional income-tax authorities, ministerial personnel, executives, or consultants that the Board deemed essential to assist the BAR members.
Additionally, this responsibility is given to the jurisdictional Principal CCIT for the BAR in question, the Principal Chief Commissioner of Income Tax concerned, in conjunction with the board.
The Central Government in its 2021 budget proposed to constitute a Board for Advance Ruling. And now it happened.
It was proposed that the board shall constitute one or more Board for Advance Rulings for giving advance rulings under the said Chapter on and after the notified date. Every such Board shall consist of two members, each being an officer not below the rank of Chief Commissioner. Advance rulings of such Board shall not be binding on the applicant or the Department and if aggrieved, the applicant or the Department may appeal against the ruling or order passed by the Board before the High Court.
Further, Section 245N of Income Tax Act was proposed to be amended to incorporate the definitions of the Board of Advance Rulings, notified date, Member of the Board of Advance Rulings and change in the definition of Authority to include the Board for Advance Rulings.
Also it was proposed that Section 245-OB shall be inserted to provide for the constitution of the Board of Advance Rulings.
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