Amended and updated notes on section 245T 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 Advance ruling to be void in certain circumstances.
Chapter XIXB (Sections 245N to 245V) of the Income Tax Act 1961 deals with the provisions related to Advance rulings . Section 245T of IT Act 1961 provides for Advance ruling to be void in certain circumstances.
Recently, we have discussed in detail section 245S (Applicability of advance ruling) of IT Act 1961. Today, we learn the provisions of section 245T of Income-tax Act 1961. The amended provision of section 245T 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 245T 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-245T: Advance ruling to be void in certain circumstances
Section 245T(1) of Income Tax Act
Where the Authority finds, on a representation made to it by the Principal Commissioner or Commissioner or otherwise, that an advance ruling pronounced under sub-section (6) of section 245R has been obtained by the applicant by fraud or misrepresentation of facts, it may, by order, declare such ruling to be void ab initio and thereupon all the provisions of this Act shall apply (after excluding the period beginning with the date of such advance ruling and ending with the date of order under this sub-section) to the applicant as if such advance ruling had never been made.
Section 245T(2) of Income Tax Act
A copy of the order made under sub-section (1) shall be sent to the applicant and the Principal Commissioner or Commissioner.
Section 245T(3) of Income Tax Act
With effect from such date as the Central Government may, by notification in the Official Gazette, appoint, the provisions of this section shall have effect as if for the word “Authority”, the words “Board for Advance Rulings” had been substituted.
[Sub-section(3) of section 245T 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 245T vide Notification No. 97/2021, S.O. 3562(E) dated 01.09.2021]