Applicant [Section 245N(b)] :
‘Applicant’ means any person who –
(1) (i) is a non-resident referred to in (1) of 23.2..1 above; or
(ii) is a resident referred to in (2) of 23.2.1 above; or
(iii) is a resident referred to in (3) of 23.2.1 above falling within any such class or category of persons as the Central Government may, by notification in the Official Gazette, specify [A resident in relation to his tax liability arising out of one or more transactions valuing Rs 100 crore or more in total which has been undertaken or is proposed to be undertaken would be an applicant – Notification No.73/2014 dated 28.11.2014]; or
(iv) is a resident falling within such class or category of persons as the Central Government may, by notification in the Official Gazette, specify in this behalf ; or
(v) is referred to in (5) of 23.2.1 above; and
(2) makes an application for advance ruling under section 245Q.
In this connection, the Central Government has notified the following class of persons as applicants for the purposes of this Chapter–
(a) Public sector company as defined under section 2(36A) of the Income-tax Act, 1961;
(b) a person seeking advance ruling in relation to the tax liability of a non-resident arising out of a transaction undertaken by him with a non-resident.
[Notification No.SO 473 (E) dated 21.6.1999]
The AAR shall, however, not allow an application in respect of the following :
(i) any question pending before any Income-tax Authority, Appellate Tribunal or Court (except in case of a resident applicant mentioned in section 245N(b)(iii);
(ii) any question that involves determination of fair market value of any property; and
(iii) any question in relation to a transaction which is designed prima facie for the avoidance of income-tax (except in case of a resident applicant mentioned in section 245N(b)(iii).
Restrictions on Appellate Authority: Section 245RR provides that where a resident applicant has made an application to AAR and referred issues therein for decision of AAR, then, any Income-tax Authority or Tribunal should not take any decision in respect of such issues. In other words, a resident assessee cannot pursue both the remedies, i.e. an appeal or revision before Income-tax Authority/Appellate Authority as well as an application for Advance Ruling to AAR, in respect of an issue.