Section 92CA of Income Tax Act "Reference to Transfer Pricing Officer"
92CA. (1) Where any person, being the assessee, has
entered into an international transaction or specified
domestic transaction in any previous year, and the Assessing
Officer considers it necessary or expedient so to do, he
may, with the previous approval of the Principal
Commissioner or Commissioner, refer the computation of the
arm's length price in relation to the said international
transaction or specified domestic transaction under section
92C to the Transfer Pricing Officer.
(2) Where a reference is made under sub-section (1), the
Transfer Pricing Officer shall serve a notice on the
assessee requiring him to produce or cause to be produced on
a date to be specified therein, any evidence on which the
assessee may rely in support of the computation made by him
of the arm's length price in relation to the international
transaction or specified domestic transaction referred to in
sub-section (1).
(2A) Where any other international transaction [other
than an international transaction referred under sub-section
(1)], comes to the notice of the Transfer Pricing Officer
during the course of the proceedings before him, the
provisions of this Chapter shall apply as if such other
international transaction is an international transaction
referred to him under sub-section (1).
(2B) Where in respect of an international transaction, the
assessee has not furnished the report under section 92E and
such transaction comes to the notice of the Transfer Pricing
Officer during the course of the proceeding before him, the
provisions of this Chapter shall apply as if such
transaction is an international transaction referred to him
under sub-section (1).
(2C) Nothing contained in sub-section (2B) shall empower the
Assessing Officer either to assess or reassess under section
147 or pass an order enhancing the assessment or reducing a
refund already made or otherwise increasing the liability of
the assessee under section 154, for any assessment year,
proceedings for which have been completed before the 1st day
of July, 2012.
(3) On the date specified in the notice under sub-section
(2), or as soon thereafter as may be, after hearing such
evidence as the assessee may produce, including any
information or documents referred to in sub-section (3) of
section 92D and after considering such evidence as the
Transfer Pricing Officer may require on any specified points
and after taking into account all relevant materials which
he has gathered, the Transfer Pricing Officer shall, by
order in writing, determine the arm's length price in
relation to the international transaction or specified
domestic transaction in accordance with sub-section (3) of
section 92C and send a copy of his order to the Assessing
Officer and to the assessee.
(3A) Where a reference was made under sub-section (1) before
the 1st day of June, 2007 but the order under sub-section
(3) has not been made by the Transfer Pricing Officer before
the said date, or a reference under sub-section (1) is made
on or after the 1st day of June, 2007, an order under
sub-section (3) may be made at any time before sixty days
prior to the date on which the period of limitation referred
to in section 153, or as the case may be, in section 153B
for making the order of assessment or reassessment or
recomputation or fresh assessment, as the case may be,
expires:
Provided that in the circumstances referred to in clause
(ii) or clause (x) of Explanation 1 to section 153, if the
period of limitation available to the Transfer Pricing
Officer for making an order is less than sixty days, such
remaining period shall be extended to sixty days and the
aforesaid period of limitation shall be deemed to have been
extended accordingly.
(4) On receipt of the order under sub-section (3), the
Assessing Officer shall proceed to compute the total income
of the assessee under sub-section (4) of section 92C in
conformity with the arm's length price as so determined by
the Transfer Pricing Officer.
(5) With a view to rectifying any mistake apparent from the
record, the Transfer Pricing Officer may amend any order
passed by him under sub-section (3), and the provisions of
section 154 shall, so far as may be, apply accordingly.
(6) Where any amendment is made by the Transfer Pricing
Officer under sub-section (5), he shall send a copy of his
order to the Assessing Officer who shall thereafter proceed
to amend the order of assessment in conformity with such
order of the Transfer Pricing Officer.
(7) The Transfer Pricing Officer may, for the purposes of
determining the arm's length price under this section,
exercise all or any of the powers specified in clauses (a)
to (d) of sub-section (1) of section 131 or sub-section (6)
of section 133 or section 133A.
49a[(8) The Central Government may make a scheme, by
notification in the Official Gazette, for the purposes of
determination of the arm's length price under sub-section
(3), so as to impart greater efficiency, transparency and
accountability by-
(a) eliminating the interface between the Transfer Pricing
Officer and the assessee or any other person to the extent
technologically feasible;
(b) optimising utilisation of the resources through
economies of scale and functional specialisation;
(c) introducing a team-based determination of arm's length
price with dynamic jurisdiction.
(9) The Central Government may, for the purpose of giving
effect to the scheme made under sub-section (8), by
notification in the Official Gazette, direct that any of the
provisions of this Act shall not apply or shall apply with
such exceptions, modifications and adaptations as may be
specified in the notification:
Provided that no direction shall be issued after the 31st
day of March, 2022.
(10) Every notification issued under sub-section (8) and
sub-section (9) shall, as soon as may be after the
notification is issued, be laid before each House of
Parliament.]
Explanation.-For the purposes of this section, "Transfer
Pricing Officer" means a Joint Commissioner or Deputy
Commissioner or Assistant Commissioner authorised by the
Board to perform all or any of the functions of an Assessing
Officer specified in sections 92C and 92D in respect of any
person or class of persons.
What is the Meaning of associated enterprise? Section 92A of Income Tax Act 1961
What is the Meaning of international transaction? Section 92B of Income Tax Act 1961
What is the Meaning of specified domestic transaction? Section 92BA of Income Tax Act 1961
What is Computation of arm's length price? Section 92C of Income Tax Act 1961
What is Reference to Transfer Pricing Officer? Section 92CA of Income Tax Act 1961
What is the Effect to advance pricing agreement? Section 92CD of Income Tax Act 1961