13. In section 92CA of the Income-tax Act, with effect from the 1st day of June, 2011,—
(i) after sub-section (2), the following sub-section shall be inserted, namely:—
"(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).";
(ii) in sub-section (7), after the word and figures "section 133", the words, figures and letter "or section 133A" shall be inserted.
Notes on Clauses:
Clause 13 of the Bill seeks to amend section 92CA of the Income-tax Act relating to reference to Transfer Pricing Officer.
Under the existing provisions contained in sub-section (1) of the aforesaid section, where an assessee has entered into an international transaction in any previous year, and the Assessing Officer considers it necessary, he may, with the previous approval of the Commissioner, refer the computation of the arm’s length price in relation to the international transaction under section 92C, to the Transfer Pricing Officer.
Sub-section (2) of the aforesaid section, inter alia, provides that the Transfer Pricing Officer, for the purpose of determining the arm’s length price in respect of international transactions referred to him by the Assessing Officer shall serve a notice on the assessee requiring him to produce evidence in support of computation of the arm’s length price of such transactions.
It is proposed to insert a new sub-section (2A) so as to enable the Transfer Pricing Officer to take into account any other international transaction which comes to his notice subsequently during the course of the proceeding before him as if such transaction is an international transaction referred under sub-section (1) and the provisions of Chapter X of the Income-tax Act shall apply accordingly.
Sub-section (7) of the aforesaid section provides that for the purposes of determining arm’s length price, the Transfer Pricing Officer shall have the powers as provided under sub-section (1) of section 131 and clause (6) of section 133.
It is proposed to amend the said sub-section (7) so as to enable the Transfer Pricing Officer to exercise the power of survey conferred upon an income-tax authority under section 133A of the Act.
These amendments will take effect from 1st June, 2011.
