Amended and updated notes on section 245U 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 Powers of the Authority.
Chapter XIXB (Sections 245N to 245V) of the Income Tax Act 1961 deals with the provisions related to Advance rulings . Section 245U of IT Act 1961 provides for Powers of the Authority.
Recently, we have discussed in detail section 245T (Advance ruling to be void in certain circumstances) of IT Act 1961. Today, we learn the provisions of section 245U of Income-tax Act 1961. The amended provision of section 245U 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 245U 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-245U: Powers of the Authority
Section 245U(1) of Income Tax Act
The Authority shall, for the purpose of exercising its powers, have all the powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908) as are referred to in section 131 of this Act.
Section 245U(2) of Income Tax Act
The Authority shall be deemed to be a civil court for the purposes of section 195, but not for the purposes of Chapter XXVI, of the Code of Criminal Procedure, 1973 (2 of 1974) and every proceeding before the Authority shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196, of the Indian Penal Code (45 of 1860).
Section 245U(3) of Income Tax Act
On and from such date as the Central Government may, by notification in the Official Gazette, appoint, the powers of the Authority under this section shall be exercised by the Board for Advance Rulings and the provisions of this section shall mutatis mutandis apply to the Board for Advance Rulings as they apply to the Authority.
[Sub-section(3) of section 245U 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 245U vide Notification No. 97/2021, S.O. 3562(E) dated 01.09.2021]