INCOME TAX ACT, 1961

Article 226

Writ - Advance Ruling - AO issued notices pursuant to order of AAR for the purpose of carrying out assessment -

Assessee filed writ petition before the court submitting that consequent upon the issuance of order by Authority for Advance Rulings, AO issued notices for the purpose of carrying out the assessment. It was submitted that assessee was willing to join the assessment proceedings. Assessee however, expressed an apprehension that AO would feel bound by the prima facie findings returned by AAR in relation to the alleged tax avoidance. Held: On a reading of order passed by the said authority, it was evident that the said findings were only prima facie, which means, that they were not final and binding, and that they have not been arrived at after detailed examination of the materials placed before the authority. Thus, it should be open to AO and the other statutory authorities to arrive at their own findings upon appreciation of evidence and the materials placed on record and they should be not bound by the prima facie findings. The issue that remained to be determined was whether assessee would be entitled to the benefit of Indian-Mauritius Double Taxation Avoidance Treaty. AO would expedite the assessment proceedings and would pass the assessment order preferably subject to assessee co-operating in the assessment proceedings and not taking any adjournments.

REFERRED :

FAVOUR : Direction issued.

A.Y. :

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