In Re: Connecteurs Cinch, S.A.

appellants: in re: connecteurs cinch, s.a.vs.syed shah mohammed quadri, j. (chairman), k.d. singh and k.d. gupta, members 1. the applicant m/s connecteurs cinch, s.a., a non-resident company in france has a wholly owned indian subsidiary--m/s cinch connecteurs (india) (p) ltd. having its factory at wihitefield industrial area, bangalore. the indian company has been manufacturing various types of electronic connectors from 1997. it is stated that during the year ended 2002; the indian company has been allowed to set up a hardware technology park and the existing factory has been bonded by the customs.2. the applicant states that since it intends to make substantial investment in the unit, it has sought ruling from the authority, whether the indian subsidiary would be entitled to tax exemption under section ida of the it act for the period from 18th march, 2002 to 31st march, 2010 or atleast upto 18th march, 2009.3. the jurisdictional cit has pleaded that the application is not maintainable because the non-resident company has sought an advance ruling on the tax liability of the indian company, which is not permissible under section 245n of the act.4. as per section 245n(a)(i) of the act, an advance ruling means a determination by the authority in relation to a transaction undertaken or proposed to be undertaken by a non-resident applicant. in the instant case, the applicant is neither a non-resident nor does the transaction relate to taxability of the applicant as a transaction by a non-resident. therefore, the question seeking advance ruling does not fall in purview of a case in which an advance ruling can be sought.5. we are in agreement with the jurisdictional cit that the tax exemption of indian subsidiary is not a consequence of the transaction undertaken or proposed to be undertaken by the non-resident applicant.the application is, therefore, not maintainable and is hereby rejected.