Section 386
Section 386: advance ruling void in certain circumstances
Section 386 is the safeguard against misuse of the advance ruling process - if a ruling was obtained by fraud or misrepresentation, the Board for Advance Rulings can declare it void from the very beginning, effectively rolling back time as if the ruling had never been made.
When a ruling can be voided
Where, on a representation made by the Principal Commissioner or Commissioner or otherwise, the Board for Advance Rulings finds that an advance ruling pronounced under Section 384(6) was obtained by the applicant by fraud or misrepresentation, it may, by order, declare such ruling void ab initio.
Once declared void, all the provisions of the Act apply to the applicant as if the advance ruling had never been made - except that the period beginning with the date of the advance ruling and ending with the date of the order declaring it void is excluded (i.e., not counted against the applicant for that intervening period).
Notice of the order
A copy of the order made under sub-section (1) is sent to the applicant and to the Principal Commissioner or Commissioner.
Frequently asked questions
On what ground can an advance ruling be declared void?
Only where the Board for Advance Rulings finds that the ruling was obtained by the applicant by fraud or misrepresentation.
What happens to the period between the ruling and the order voiding it?
That period is excluded when applying the Act's provisions to the applicant as if the ruling had never been made - it is carved out of the retrospective effect.
Related sections
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Talk to our tax team about an advance ruling issueLast updated 9 September 2026