The Indian branch of Dhanush Co. Ltd, Country K has carried out some transactions with Light Co. Ltd, Bengaluru in the financial year 2025-26. The…
CA Final · Direct Tax Laws and International Taxation · MTP · May 2026
The Indian branch of Dhanush Co. Ltd, Country K has carried out some transactions with Light Co. Ltd, Bengaluru in the financial year 2025-26. The value of the transaction is 600 crores. Light Co. Ltd. applied for advance ruling in January, 2026 to know exactly the tax consequences of its transactions with the non-resident Dhanush Co. Ltd., Country K, both for itself and on non-resident. Application for ruling is accepted by Board for Advance Rulings (BAR). On 30.4.2026, BAR pronounced its ruling and said ruling was communicated to Light Co. Ltd. on the same date. Light Co. Ltd. was, however, not satisfied with said ruling. State whether the advance ruling pronounced by BAR is binding on Light Co. Ltd. Is there any remedy available to Light Co. Ltd. if it is aggrieved with the said ruling? Examine.
Suggested Answer and Working Notes:
Advance ruling pronounced by Board for Advance Rulings is not binding on Light Co. Ltd. Section 245W provides that the applicant who is aggrieved by any ruling pronounced or order passed by the Board for Advance Rulings may appeal to the High Court against such ruling. He has to do so within sixty days from the date of the communication of that ruling or order, in the prescribed form and manner. Accordingly, if Light Co. Ltd. is aggrieved by the advance ruling pronounced by BAR, it can file an appeal before the High Court on or before 29th June 2026. The High Court can grant extension of a further period of 30 days for filing the appeal, if it is satisfied, on an application made by Light Co. Ltd. in this behalf, that it was prevented by sufficient cause from presenting the appeal within the 60 days period as specified above.
Topics: Double Taxation Relief, Non-Resident Taxation
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