Chapter XVIII - Appeals, Revisions and Alternate Dispute Resolutions
Section 387
Section 387: powers of the Board for Advance Rulings
Section 387 gives the Board for Advance Rulings civil-court-like powers so it can effectively examine records, hear parties and conduct proceedings, and treats its proceedings as judicial proceedings for specified purposes.
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This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) The Board for Advance Rulings shall, for the purpose of exercising its powers, have all the powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908) as are referred to in section 246 of this Act.
(2) The Board for Advance Rulings shall be deemed to be a civil court for the purposes of section 215 but not for the purposes of Chapter XXVIII of the Bharatiya Nagarik Suraksha Sanhita, 2023 (46 of 2023) and every proceeding before the Board for Advance Rulings shall be deemed to be a judicial proceeding under sections 229 and 267 and for the purposes of section 233 of the Bharatiya Nyaya Sanhita, 2023 (45 of 2023).
Introduction
The Board for Advance Rulings receives specified civil-court powers for its work, but it is not deemed a civil court for every purpose.
Section 387 cross-refers to section 246 for the powers and names the precise statutory provisions for which Board proceedings are treated as judicial proceedings.
Key takeaways
Defined civil-court powers
The Board has the powers of a civil court referred to in section 246 for exercising its functions.
Limited deemed status
It is deemed a civil court for section 215 of the Bharatiya Nagarik Suraksha Sanhita, 2023, but not for Chapter XXVIII of that Sanhita.
Judicial proceedings
Proceedings before the Board are treated as judicial proceedings for the penal-law provisions named in section 387(2).
Civil court powers
The Board for Advance Rulings has, for the purpose of exercising its powers, all the powers of a civil court under the Code of Civil Procedure, 1908, as are referred to in Section 246 of this Act.
Deemed civil court and judicial proceedings
The Board for Advance Rulings is deemed to be a civil court for the purposes of section 215 of the Bharatiya Nagarik Suraksha Sanhita, 2023, but not for the purposes of Chapter XXVIII of that Sanhita.
Every proceeding before the Board for Advance Rulings is deemed to be a judicial proceeding under sections 229 and 267, and for the purposes of section 233, of the Bharatiya Nyaya Sanhita, 2023.
Applying Section 387 in practice
What the powers do. The Board can use the specified civil-court-like powers to require information and examine the record; its proceedings have the judicial-proceeding status stated in the section. These are procedural powers for resolving the ruling question. They do not turn the Board into a general civil court for every dispute between the parties.
Preparation: organise contracts, facts, valuation support and correspondence by the question asked; identify who can explain each record; answer any production direction within the applicable time. FAQ: May the applicant ignore a request because the transaction is only proposed? No; the advance-ruling process still depends on a complete and reliable factual record.
Step-by-step flow for applying Section 387
- 1
Is the matter a proceeding before the Board for Advance Rulings?
Section 387 applies only to the Board for Advance Rulings and to proceedings before it.
- 2
Does the step need a civil-court power, such as calling for evidence or attendance?
Section 387(1) gives the Board, for exercising its powers, the powers of a civil court under the Code of Civil Procedure, 1908 that are referred to in Section 246. Read Section 246 for the list of those powers.
- 3
Is the question whether the Board counts as a civil court?
Section 387(2) deems the Board a civil court for the purposes of section 215 of the Bharatiya Nagarik Suraksha Sanhita, 2023 only. It is expressly not a civil court for the purposes of Chapter XXVIII of that Sanhita.
- 4
Is the question about the legal status of the proceeding itself?
Every proceeding before the Board is deemed a judicial proceeding under sections 229 and 267, and for the purposes of section 233, of the Bharatiya Nyaya Sanhita, 2023. Section 387 does not itself state any consequence; that is found in the provisions it names.
Practical checklist
Do
- For an evidence or attendance question, read the specific civil-court powers referred to in section 246.
- When assessing the legal effect of Board proceedings, use the exact penal-law provisions named in subsection (2).
Avoid
- Do not assume the Board is a civil court for every procedural or criminal-law purpose.
Illustrative example
Worked example: a production direction from the Board
Hypothetical facts (illustration only, not a real taxpayer): A company has applied for an advance ruling on a proposed share transfer. The Board for Advance Rulings directs it to produce the draft agreements and asks a director to attend and explain the valuation. The company's team suggests sending only a short summary.
Source of the power
The direction to produce documents and to require attendance is a civil-court power of the kind referred to in Section 246. Section 387(1) gives the Board those powers for exercising its functions.
Proposed transaction
The transaction being only proposed does not reduce the Board's power. The ruling depends on the record placed before it.
Status of the hearing
Under Section 387(2), the proceeding is deemed a judicial proceeding for sections 229 and 267, and for section 233, of the Bharatiya Nyaya Sanhita, 2023. Statements made by the director are made in that setting.
Limits of the deeming
The Board is a deemed civil court only for section 215 of the Bharatiya Nagarik Suraksha Sanhita, 2023 and not for Chapter XXVIII of that Sanhita, so the company should not treat the Board as a civil court for every purpose.
Outcome
- The company should produce the agreements and arrange the director's attendance rather than file only a summary.
- Any question about the effect of a false or incomplete statement must be answered under the Bharatiya Nyaya Sanhita provisions named in Section 387(2).
Glossary
- Deemed civil court
- A statutory legal status confined here to section 215 of the Bharatiya Nagarik Suraksha Sanhita, 2023, with an express exclusion for Chapter XXVIII of that Sanhita.
- Judicial proceeding
- A proceeding treated as judicial for the three Bharatiya Nyaya Sanhita provisions specifically named in subsection (2).
Frequently asked questions
Is the Board for Advance Rulings treated as a civil court for all purposes?
No - it is deemed a civil court for the purposes of section 215 of the Bharatiya Nagarik Suraksha Sanhita, 2023 only, and specifically not for the purposes of Chapter XXVIII of that Sanhita.
Need help applying this provision to your situation?
Talk to our tax team about advance ruling proceedingsLast updated 2026-10-10