Determination of arm's length price
160. (1) The Transfer Pricing Officer may select any international transaction for the purposes of determining the arm's length price in relation to the transaction.
(2) The selection referred to in sub-section (1) shall be made in accordance with the risk management strategy framed by the Board in this behalf.
(3) The Transfer Pricing Officer shall communicate to the assessee in writing about the selection of the transaction entered into by him.
(4) However, the communication, referred to in sub-section (3), shall not be served on the assessee after two months from the end of the financial year in which the report is furnished to, or the information about the transaction is received by, the Transfer Pricing Officer.
(5) The Transfer Pricing Officer shall also serve a copy of the communication referred to in sub-section (2) to the Assessing Officer within seven days from the date on which the communication is sent to the assessee.
(6) The Transfer Pricing Officer may, upon selection under sub-section (1), serve on the assessee a notice requiring him, on a date to be specified therein,-
(a) to attend his office or to produce, or cause to be produced, any evidence, if any, 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
(b) to produce, or cause to be produced, such accounts or documents as the Transfer Pricing Officer may require.
(7) The Transfer Pricing Officer shall determine the arm's length price in relation to the international transaction in accordance with the provisions of section 106 after taking into account,-
(a) such evidence as the assessee may produce; and
(b) the material in his possession, in respect of which an opportunity of being heard has been provided to the assessee.
(8) The Transfer Pricing Officer may determine the arm's length price in relation to the international transaction to the best of his judgement, if the assessee does not cooperate or comply with his direction.
(9) The Transfer Pricing Officer shall serve a report of his determination under subsection (7) or sub-section (8), as the case may be, on the Assessing Officer and the assessee.
(10) No determination under sub-section (7) or sub-section (8) shall be made, or report of such determination served as required by sub-section (9), after forty-two months from the end of the financial year in which the international transaction is entered into.
(11) 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 section 138 or section 144.
(12) No information relating to risk management strategy framed by the Board shall, regardless of anything to the contrary contained in any other Act for the time being in force, be revealed to any assessee or any member of the public.
