129. Notice and Forms for reference under section 274.—

(1) For the purposes of section 274(1), before making a reference to the Commissioner, the Assessing Officer shall issue a notice to the assessee seeking objections, if any, as to the applicability of provisions of Chapter XI in his case.

(2) The notice referred to in sub-rule (1) shall contain the following: —

(a) details of the arrangement to which the provisions of Chapter XI are proposed to be applied;

(b) the tax benefit arising under the arrangement;

(c) the basis and reason for considering that the main purpose of the identified arrangement is to obtain tax benefit;

(d) the basis and the reasons why the arrangement satisfies the conditions in section 179(1)(a) to (d); and

(e) the list of documents and evidence relied upon in respect of clauses (c) and (d).

(3) The reference by the Assessing Officer to the Commissioner under section 274(1) shall be in Form No. 62.

(4) Where the Commissioner is satisfied that the provisions of Chapter XI are not required to be invoked with reference to an arrangement, he shall record his satisfaction regarding the applicability of the provisions of Chapter XI in Form No. 63 and issue directions to the Assessing Officer in Form No. 63, after considering __

(a) the reference received from the Assessing Officer under section 274(1); or

(b) the reply of the assessee in response to the notice issued under section 274(2).

(5) The Commissioner, before making a reference to the Approving Panel under section 274(4), shall, —

(a) record his satisfaction regarding the applicability of the provisions of Chapter XI in Form No. 64; and

(b) seek specific factual report in writing from the International Financial Service Centre Authority, where the assessee is an entity located in an International Financial Service Centre.

(6) The Commissioner or Principal Commissioner shall make a reference under section 274(4) to an Approving panel in Form No. 64 with such other documents as deemed fit, with all being submitted in four sets, either in Hindi or English.