SAGE PUBLICATIONS LTD. Vs. DEPUTY COMMISSIONER OF INCOME

JUDGEMENT

(1.) The assessee-petitioner is aggrieved by the rejection of its application under section 245R(2) of the Income-tax Act, 1961 (hereafter "the Act") on the ground that the questions for which reference was made, are part of a pending proceeding.

(2.) The facts to the extent they are necessary are that the petitioner, a nonresident corporation had filed its return for the assessment year 2012-13. It applied for an advance ruling under section 245R of the Act, to the Advance Rulings Authority (hereafter "the Ruling Authority"), on November 21, 2013. When the application came up for consideration, the Ruling Authority rejecte it citing the reason that the issue was "pending", thereby invoking proviso to article 245R(2). The Ruling Authority's order is as follows :

(3.) Learned counsel relies upon the judgment of this court in LS Cable and System Ltd. v. Commissioner of Income Tax (W.P. (C) No. 8799 of 2015, decided on May 13, 2016) [2016] 385 ITR 99 (Delhi) as well as the previous judgment in Hyosung Corporation v. AAR [2016] 382 ITR 371 (Delhi) . It is contended that when notice under section 143(2) is issued in general terms, the Ruling Authority cannot reject the application summarily, invoking proviso to section 245R(2) and observing that the questions are pending.