Income Tax Act, 1961 | Chapter XIX-B
Section 245RR: Appellate Authority Not to Proceed in Certain Cases
Section 245RR of the Income-tax Act, 1961 addresses the overlap between an advance-ruling application made by a resident applicant and proceedings before an income-tax authority or the Income Tax Appellate Tribunal (ITAT). Its central purpose is to prevent simultaneous decisions on the same issue while the advance-ruling process is invoked.
Text and meaning of Section 245RR
No income-tax authority or the Appellate Tribunal shall proceed to decide any issue in respect of which an application has been made by an applicant, being a resident, under sub-section (1) of section 245Q.
This is the provision reproduced in the source webpage. It operates as a restriction on deciding the issue covered by the resident applicant's advance-ruling application; it does not, merely by its wording, impose a blanket prohibition on every issue in an assessment or appeal.
Important statutory terms
- Resident applicant
- An applicant who qualifies as a resident and falls within an eligible category under the advance-ruling provisions, particularly the definitions in Section 245N. Residence alone does not necessarily confer eligibility to apply.
- Advance ruling
- A statutory determination on a specified tax question concerning a transaction or issue within the categories allowed by the advance-ruling framework.
- Application under Section 245Q(1)
- An application seeking an advance ruling, specifying the question on which the determination is requested. See Section 245Q.
- Appellate Tribunal
- The Income Tax Appellate Tribunal, the statutory appellate body that hears prescribed income-tax appeals.
How the restriction works
- Identify the precise question: compare the question stated in the advance-ruling application with the issue pending before the assessing or appellate authority.
- Verify applicant eligibility: Section 245RR specifically refers to an applicant who is a resident. The statutory category and applicable version of the law matter.
- Distinguish the issue from the entire proceeding: the language prevents deciding the overlapping issue; unrelated questions may require separate consideration under applicable procedural law.
- Check the status of the application: whether it was filed, admitted, rejected, withdrawn or disposed of can affect the practical position. Relevant statutory provisions and transitional rules must be examined.
- Record the overlap: a party relying on this provision should identify the application, its question and the corresponding pending issue before the concerned authority.
Relationship with other provisions
Section 245R addresses the procedure on receipt of an advance-ruling application, including the circumstances in which an application may not be admitted. Section 245S deals with the applicability and binding nature of advance rulings under its terms. Section 245T concerns rulings obtained by fraud or misrepresentation. These provisions should be read together rather than treating Section 245RR as an independent stay of all litigation.
Later reforms and the law applicable in 2026
The Finance Act, 2021 restructured income-tax advance rulings through the Board for Advance Rulings and related procedural changes. The Income Tax Department portal and the India Code legislative database are official starting points for checking the operative legislation, amendments and subordinate rules. For applications and proceedings governed by the Income-tax Act, 2025, consult that Act and its applicable rules rather than assuming that the numbering or wording of Section 245RR continues unchanged.
The historical text above is preserved for reference to proceedings governed by the 1961 Act. The 2021 reforms and the 2025 enactment mean that the date and statutory regime are essential before relying on this provision in an actual case.
Legislative history
Section 245RR was inserted by the Finance (No. 2) Act, 1998 (Act 21 of 1998), with effect from 1 October 1998. The reference to an application under Section 245Q(1) was substituted by the Finance (No. 2) Act, 2004 (Act 23 of 2004), as reflected in the historical source notes.
Frequently asked questions
Does Section 245RR stop the entire income-tax appeal?
Not automatically. Its wording is directed to deciding the particular issue for which the resident applicant sought an advance ruling.
Does Section 245RR apply to every non-resident applicant?
No. The text specifically refers to an applicant being a resident; other provisions governing non-resident advance rulings must be considered separately.
Can the historical Section 245RR wording be used for a fresh application in 2026?
Not without checking the applicable law. The advance-ruling system was restructured in 2021, and the Income-tax Act, 2025 came into force on 1 April 2026. Current procedures and transitional rules should be verified first.
This article explains the statutory framework for general information and is not a substitute for advice on the facts of a particular proceeding.