CBDT incorporates ‘majority rule’ to address split in advance rulings

Central Board of Direct Taxes (CBDT), vide Income Tax Notification No. 38/2023 dated 12.06.2023 has amended the e-Advance Rulings Scheme, 2022 to provide for a reference on the point of difference between the Members of the Board for Advance Rulings (BAR) and decision by the rule of majority.

This has been done by inserting clause (v) in Para 6(C) of the Scheme. CBDT has provided that in case the Members of a BAR differ in opinion on any point or points, then

(i) Such BAR shall make a reference to PCCIT (International Taxation),

(ii) the PCCIT (International Taxation) shall nominate one Member from any other BAR and

(iii) such point or points shall be decided according to the opinion of the majority of the Members.

Click on the below-mentioned link to download the notification.