Section 245S of Income Tax Act for AY 2023-24

Section 245S of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Applicability of advance ruling.

Amended and updated notes on section 245S of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Applicability of advance ruling.

Chapter XIXB (Sections 245N to 245V) of the Income Tax Act 1961 deals with the provisions related to Advance rulings . Section 245S of IT Act 1961 provides for Appellate authority not to proceed in certain cases.

Recently, we have discussed in detail section 245RR (Appellate authority not to proceed in certain cases) of IT Act 1961. Today, we learn the provisions of section 245S of Income-tax Act 1961. The amended provision of section 245S is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 245S of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-245S: Applicability of advance ruling

Section 245S(1) of Income Tax Act

The advance ruling pronounced by the Authority under section 245R shall be binding only—

  • (a) on the applicant who had sought it;
  • (b) in respect of the transaction in relation to which the ruling had been sought; and
  • (c) on the Principal Commissioner or Commissioner, and the income-tax authorities subordinate to him, in respect of the applicant and the said transaction.

Section 245S(2) of Income Tax Act

The advance ruling referred to in sub-section (1) shall be binding as aforesaid unless there is a change in law or facts on the basis of which the advance ruling has been pronounced.

Section 245S(3) of Income Tax Act

Nothing contained in this section shall apply to any advance ruling pronounced under section 245R on or after such date as the Central Government may, by notification in the Official Gazette, appoint.

[Sub-section(3) of section 245S newly inserted w.e.f. 1-April-2021 by the Finance Act 2021]

[The Central Government appoints 1st day of September, 2021 as the date for the purposes of sub-section (3) of section 245S vide Notification No. 97/2021, S.O. 3562(E) dated 01.09.2021]


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