New Benches For Authority For Advance Rulings At Mumbai And Delhi

Creation of two additional benches of the Authority for Advance Rulings (Income Tax)

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval to the following:-

i. Creation of two additional benches of the Authority for Advance Rulings (Income Tax), one in New Delhi and one new bench in Mumbai;

ii. creation of two posts of Vice-Chairmen in the Apex scale and four posts of Members (two posts of Revenue Members and two posts of Law Members) in the Higher Administrative Grade (HAG+) and two posts of Secretary at the level of Commissioner of Income Tax/Joint Secretary; and

iii. one time expenditure of Rs.7.48 crores for establishment of the two additional benches and additional annual recurring expenditure of Rs. 6.61 crores for running these two additional benches.

The creation of two additional benches of the Authority would dispose of increased number of cases and pendency of cases would be reduced benefitting the tax payer and the Government. Besides, this will operationalise the facility of advance ruling for resident tax payers. The proposed additional Benches of Authority for Advance Rulings (Income Tax) will facilitate the cause of the resident tax payers in obtaining tax clarity in certain situations.


In order to provide the facility of ascertaining the Income-tax liability of a non¬resident/ to plan their Income-tax affairs well in advance and to avoid long drawn and expensive litigation, a scheme of Advance Rulings was introduced under the Income-Tax Act, 1961 and the Authority for Advance Rulings was constituted. A non-resident or certain categories of resident can obtain binding rulings from the Authority on question of law or fact arising out of any transaction/proposed transactions which are relevant for the determination of his tax liability.

In order to enable resident taxpayers to obtain an advance ruling in respect of their income tax liability above a defined threshold, it has been decided to strengthen the Authority for Advance Rulings by constituting additional benches.

3 comments on “New Benches For Authority For Advance Rulings At Mumbai And Delhi
  1. i would request government need subsidise the excessively increased fees in tune with Nirej sheth’s opinion.

  2. very good indeed. it is really natural justice as Art 265 in fact vitalises the due process of law… executive might make errors that need be rectified in the larger interests of any welfare democrcy as also any vibrant democracies.

    i second and fully appreciate Modiji’s good way of getting a meaningful administrative governance by submitting to meaningful judicial governance concept that way soon we can land on advance ruling jurisprudence is the second step.

  3. Niraj Sheth says:

    Having increased the fees for filing the aar applications mani-fold, the filing of fresh application is likely to go down significantly. Not sure whether this move is called for!!

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