F.No.226/29/2019/IT A-II
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
(CENTRAL BOARD OF DIRECT TAXES)
NEW DELHI

Dated: April 07, 2021

To
All Principal Chief Commissioners of Income-tax/ Principal Director Generals of Income-tax
All Chief Commissioners of Income-tax / Director Generals of Income-tax Act

Subject: Making references to the Approving Panel under the provisions of General Anti-Avoidance Rules (GAAR) as per section 144BA of the Income-tax Act, 1961 - reg.

1. The provisions of GAAR have been made applicable with effect from Financial Year 2017-18 relevant for the Assessment Year 2018-19. As per the GAAR provisions, the references to the Approving Panel arc required to be made in cases in which the Pr. Commissioner of Income-tax or Commissioner of Income-tax, consequent upon receipt of the reference from the Assessing Officer for declaring arrangement as an impermissible avoidance arrangement and determination of consequences thereof, issues notice to the assessee; to which the assessee objects and the Pr. Commissioner of Income-tax or Commissioner of Income-tax is not satisfied by the explanation of the assessee for objecting to the said clause of notice.

2. Composition of Approving Panel:

(i) A person, who is or has been a Judge of a High Court - Chairman

(ii) Member of Indian Revenue Service, not below the rank of Principal Chief Commissioner or Chief Commissioner of Income Tax - Member

(iii) An Academic or Scholar having special knowledge of matters such as Direct Taxes, Business Accounts and International Trade Practices- Member

Further, a Secretariat will also be set up for providing secretarial assistance to the Approving Panel under GAAR provisions.

3. As the time limit for completion of assessment for the A.Y 2018-19 is expiring on 30.04.2021, references are likely to be received under the GAAR provisions. Therefore, the Board, in exercise of its powers under section 119 of the Income-tax Act, 1961, hereby directs that till the time the Secretariat of the Approving Panel under GAAR is set up, references to the Approving Panel under section 144BA of the Act shall be sent to the following office:

O/o Under Secretary/ DCIT(OSD) (ITA-II), CBDT
Room No.245A, North Block
Department of Revenue
Ministry of Finance
New Delhi-110001

4. The above office shall compile all such references received and forward the same to the Secretariat of the Approving Panel, once the same is set up.

5. This issues with the approval of Chairman, CBDT

Ravinder Maini
Director (ITA-II), CBDT