Procedure on receipt of application [Section 245R] :

The Authority on receipt of an application will send a copy to the Principal Commissioner or Commissioner concerned and wherever considered necessary, also call upon the Principal Commissioner or Commissioner to furnish relevant records. Such records will be returned to the Principal Commissioner or Commissioner as soon as possible.

The Authority may either allow or reject an application. However, the Authority shall not allow an application where the question raised in the application:

(i) is already pending in the case of the applicant either before any income-tax authority, or Appellate Tribunal (except in case of a resident applicant falling within any such class or category of persons as the Central Government may notify in this behalf) or any court.

(ii) involves the determination of the fair market value of any property;

(iii) relates to a transaction or issue which is designed prima facie for avoidance of income-tax (except in case of a resident applicant falling within any such class or category of persons as the Central Government may notify in this behalf .

However, no application shall be rejected unless an opportunity has been given to the applicant. Further, where an application is rejected the reason for rejection shall be given in the order.

An applicant on request can appear either in person or can be represented through a duly authorised representative. The authority will pronounce the advance ruling within 6 months from the receipt of application by the authority.