Income Tax Appeals - II

Fourth Appeal to Supreme Court :

If the assessee is not satisfied with the decision given by the High Court on a question of law referred to it, he may file an appeal before the Supreme Court against the judgement of the High Court. Such appeal can only be filed before the Supreme Court if the High court certifies it to be a fit case for appeal to the Supreme Court. The application before the High Court for certificate of fitness should be field within 60 days.

Where the High Court refuses to grant such a certificate, the assessee can under Article 136 of the constitution file a Special Leave Petition before the Supreme Court. If the Special Leave Petition to appeal is granted, the Supreme court will hear and decide the appeal on merits.

The procedure outlined above in regard to appeals to High court and the Supreme Court under the Income-tax Act applies mutates-mutandis to appeals under Wealth-tax Act as well.

Advance Ruling

With a view to avoiding disputes in respect of assessment of Income-tax liability of non-residents, the Income-tax Act provides that a non-resident assessee can apply to Authority for Advance Ruling at Delhi and obtain a ruling in advance in respect of the transaction specified by the non-resident. This ruling is binding on the Income-tax authorities and the non-resident who seeks the ruling in respect of that transaction.

With effect from 1st October, 1998 the notified residents can also approach the Authority for Advance Ruling.

The person seeking the advance ruling should made an application in Form No.34 C along with a fee of Rs.2,500/- (Rupees two thousand five hundred only) through a bank draft in favour of the ‘Authority for Advance Ruling’ payable at New Delhi.

Competent authority for disputes under double tax avoidance agreements

India has entered into double taxation avoidance agreements with several countries. If a foreign tax payer is aggrieved by the actions of the tax authorities, under these agreements he can present his case to the Competent Authority which is Ministry of Finance (Department of revenue), Joint Secretary, Foreign Tax Division, North Block, New Delhi. The time limit for making reference’ to the Competent Authority is three years from the taxation complained against. This course is available to a foreign tax payer in addition to normal appellate formus in respect of assessment orders.