Income Tax Act, 2025
Section 2: Subs. by Act 25 of 2014, s. 4, for “Commissioner” (w.e.f. 12013).
2. Subs. by Act 25 of 2014, s. 4, for “Commissioner” (w.e.f. 12013).
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(11) If any direction issued under sub-section (6) specifies that declaration of the arrangement as
impermissible avoidance arrangement is applicable for any previous year other than the previous year to
which the proceedings referred to in sub-section (1) pertains, then, the Assessing Officer while
completing any assessment or reassessment proceedings of the assessment year relevant to such other
previous year shall do so in accordance with such directions and the provisions of Chapter XA and it shall
not be necessary for him to seek fresh direction on the issue for the relevant assessment year.
(12) No order of assessment or reassessment shall be passed by the Assessing Officer without the
prior approval of the 1[Principal Commissioner or Commissioner], if any tax consequences have been
determined in the order under the provisions of Chapter X-A.
(13) The Approving Panel shall issue directions under sub-section (6) within a period of six months
from the end of the month in which the reference under sub-section (4) was received.
(14) The directions issued by the Approving Panel under sub-section (6) shall be binding on—
(i) theassessee; and
(ii) the 1[Principal Commissioner or Commissioner] and the income-tax authorities subordinate to
him,
and notwithstanding anything contained in any other provision of the Act, no appeal under the Act shall
lie against such directions.
(15) The Central Government shall, for the purposes of this section, constitute one or more
Approving Panels as may be necessary and each panel shall consist of three members including a
Chairperson.
(16) The Chairperson of the Approving Panel shall be a person who is or has been a judge of a High
Court, and—
(i) one member shall be a member of Indian Revenue Service not below the rank of 2[Principal
Chief Commissioner or Chief Commissioner] of Income-tax; and
(ii) one member shall be an academic or scholar having special knowledge of matters, such as
direct taxes, business accounts and international trade practices.
(17) The term of the Approving Panel shall ordinarily be for one year and may be extended from time
to time up to a period of three years.
(18) The Chairperson and members of the Approving Panel shall meet, as and when required, to
consider the references made to the panel and shall be paid such remuneration as may be prescribed.
(19) In addition to the powers conferred on the Approving Panel under this section, it shall have the
powers which are vested in the Authority for Advance Rulings under section 245U.
(20) The Board shall provide to the Approving Panel such officials as may be necessary for the
efficient exercise of powers and discharge of functions of the Approving Panel under the Act.
(21) The Board may make rules for the purposes of the constitution and efficient functioning of the
Approving Panel and expeditious disposal of the references received under sub-section (4).
Explanation.—In computing the period referred to in sub-section (13), the following shall be
excluded—
(i) the period commencing from the date on which the first direction is issued by the Approving
Panel to the 1[Principal Commissioner or Commissioner] for getting the inquiries conducted through
the authority competent under an agreement referred to in section 90 or section 90A and ending with
the date on which the information so requested is last received by the Approving Panel or one year,
whichever is less;
If any direction issued under sub-section
specifies that declaration of the arrangement as
impermissible avoidance arrangement is applicable for any previous year other than the previous year to
which the proceedings referred to in sub-section
pertains, then, the Assessing Officer while
completing any assessment or reassessment proceedings of the assessment year relevant to such other
previous year shall do so in accordance with such directions and the provisions of Chapter XA and it shall
not be necessary for him to seek fresh direction on the issue for the relevant assessment year.
No order of assessment or reassessment shall be passed by the Assessing Officer without the
prior approval of the 1[Principal Commissioner or Commissioner], if any tax consequences have been
determined in the order under the provisions of Chapter X-A.
The Approving Panel shall issue directions under sub-section
within a period of six months
from the end of the month in which the reference under sub-section
was received.
The directions issued by the Approving Panel under sub-section
shall be binding on—
theassessee; and
the 1[Principal Commissioner or Commissioner] and the income-tax authorities subordinate to
him,
and notwithstanding anything contained in any other provision of the Act, no appeal under the Act shall
lie against such directions.
The Central Government shall, for the purposes of this section, constitute one or more
Approving Panels as may be necessary and each panel shall consist of three members including a
Chairperson.
The Chairperson of the Approving Panel shall be a person who is or has been a judge of a High
Court, and—
one member shall be a member of Indian Revenue Service not below the rank of 2[Principal
Chief Commissioner or Chief Commissioner] of Income-tax; and
one member shall be an academic or scholar having special knowledge of matters, such as
direct taxes, business accounts and international trade practices.
The term of the Approving Panel shall ordinarily be for one year and may be extended from time
to time up to a period of three years.
The Chairperson and members of the Approving Panel shall meet, as and when required, to
consider the references made to the panel and shall be paid such remuneration as may be prescribed.
In addition to the powers conferred on the Approving Panel under this section, it shall have the
powers which are vested in the Authority for Advance Rulings under section 245U.
The Board shall provide to the Approving Panel such officials as may be necessary for the
efficient exercise of powers and discharge of functions of the Approving Panel under the Act.
The Board may make rules for the purposes of the constitution and efficient functioning of the
Approving Panel and expeditious disposal of the references received under sub-section
the period commencing from the date on which the first direction is issued by the Approving
Panel to the 1[Principal Commissioner or Commissioner] for getting the inquiries conducted through
the authority competent under an agreement referred to in section 90 or section 90A and ending with
the date on which the information so requested is last received by the Approving Panel or one year,
whichever is less;