Amendment of section 92CA.
38. In section 92CA of the Income-tax Act,—
(a) in sub-sections (1), (2) and (3), for the words “international transaction”, wherever they occur, the words “international transaction or specified domestic transaction” shall respectively be substituted with effect from the 1st day of April, 2013;
(b) after sub-section (2A), the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2002, namely:—
“(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).”.
(c) after sub-section (2B), as so inserted, the following sub-section shall be inserted with effect from the 1st day of July, 2012, namely:—
“(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.”.
Notes on Clauses:
Clause 38 of the Bill seeks to amend section 92CA of the Income-tax Act relating to reference to Transfer Pricing Officer.
The existing provisions of the aforesaid section 92CA provide for reference to Transfer Pricing Officer for computation of arm’s length price in relation to an international transaction.
It is proposed to amend sub-sections (1), (2) and (3) of the aforesaid section to substitute the expression “international transaction or specified domestic transaction” in place of “international transaction” so as to include in the aforesaid section the specified domestic transaction for the purposes of computation of arm’s length price.
These amendments will take effect from 1st April, 2013 and will, accordingly, apply in relation to the assessment year 2013-2014 and subsequent assessment years.
It is further proposed to insert a new sub-section (2B) in the aforesaid section so as to provide that 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 in the course of proceeding before him, then he shall be empowered to take into account such transaction as if it is an international transaction referred to him by the Assessing Officer under sub-section (1) and all the provisions of Chapter X of the Income-tax Act shall apply accordingly.
This amendment will take effect retrospectively from 1st June, 2002.
It is also proposed to insert a new sub-section (2C) so as to provide that nothing contained in this sub-section shall empower the Assessing Officer either to 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 commencing on or before 1st April, 2012.
This amendment will take effect from 1st July, 2012.
