Determination of arm's length price.
153. (1) The Assessing Officer may, with the prior approval of the Commissioner, refer to the Transfer Pricing Officer, the computation of arm's length price under section 117 in relation to any international transaction entered into by the assessee in any financial year, if he considers it necessary or expedient to do so.
(2) The Transfer Pricing Officer may, upon reference made to him 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, 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.
(3) The Transfer Pricing Officer shall determine the arm's length price in relation to the international transaction in accordance with the provisions of section 117 after taking into account—
(a) such evidence as the assessee may produce; and
(b) the material in his possession gathered after giving an opportunity of being heard to the assessee.
(4) The Transfer Pricing Officer may determine the arm's length price in relation to the international transaction to the best of his judgment, if the assessee does not co-operate or comply with his direction.
(5) The Transfer Pricing Officer shall send a report of his determination under subsection (3) or sub-section (4), as the case may be, to the Assessing Officer and the assessee.
(6) No determination under sub-section (3) or sub-section (4) shall be made, or report of such determination sent as required by sub-section (5), after a period of forty-two months from the end of the financial year in which the international transaction is entered into.
(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 section 134 or section 140.
