AAR chairman demands adequate infra to deal with pending cases

Putting the ball in the Finance Ministry's court for a faster disposal of tax matters, Authority of Advance Rulings (AAR) Chairman V S Sirpurkar today demanded adequate infrastructure to expeditiously deal with the cases having a bearing on foreign investment.
AAR and its rulings had come in limelight in the wake of the recent controversy about the applicability of MAT (Minimum Alternate Tax) on foreign institutional investors. Concerns were raised in some quarters that conflicting orders and delay in disposal of cases could have added to the controversy.
Referring to the MAT controversy, Sirpurkar said here at an industry event on taxation matters that the Tax Department did not make its views clear when the matter was pending with AAR.

He suggested that the tax officials should come prepared before the Authority for Advance Rulings (AAR) and not seek frequent adjournments, which leads to delay in adjudication of the cases.
"The infrastructural problems have to be seriously addressed. Unless these problems are addressed, the things not going to work. Everything depends upon the credibility of AAR... Almost 90 per cent of the applications pending before me are by the foreign companies," Sirpurkar said at a CII event here.
"Simple question was applicability of Section 115JB... At least in 30 applications before me these question is asked. What have you (tax department) been doing? If there are 30-40 applications by foreign companies who are prepared to pour in money, you don't even answer that if they are required to maintain their accounts as per Indian Companies Law," Sirpurkar added.

Central Board of Direct Taxes (CBDT) Chairperson Anita Kapur, who was present at the same event, said her department has recently issued instructions that only senior officers will appear in AAR to give the viewpoints of the tax department.

"Somethings are in my control, somethings are not. Whatever is under my control, I can assure that I will take every step that my officers don't seek adjournment...," she said.
Sirpurkar regretted that some cases have been pending for over four years, although AAR is expected to dispose off the applications within six months.
Listing out the infrastructural hurdles in the functioning of AAR, he said that appointments of members and Vice Chairman have been delayed resulting in pendency of cases.

"Infrastructure is not provided by providing chairs, chambers, computers, staff... Please make the appointments in time. At least, see that those who are appointed get proper opportunity to work," said Sirpurkar, who is a retired Supreme Court judge.
AAR provides advance ruling to companies with regard to their tax liabilities.