Amendment of section 271.
92. In section 271 of the Income-tax Act, in sub-section (1), in Explanation 7, for the words “international transaction”, the words “international transaction or specified domestic transaction” shall be substituted with effect from the 1st day of April, 2013.
Notes on Clauses:
Clause 92 of the Bill seeks to amend section 271 of the Income-tax Act relating to failure to furnish return, comply with notice, concealment of income, etc.
The existing provision of Explanation 7 of the aforesaid section 271 provides that where in the case of an assessee who has entered into an international transaction, any amount is added or disallowed in computing the total income under sub-section (4) of section 92C, the amount so added or disallowed shall be deemed to represent the income in respect of which particulars have been concealed or inaccurate particulars have been furnished unless the assessee proves to the satisfaction of the Assessing Officer or the Commissioner (Appeals) or the Commissioner that the price charged or paid in such transaction was computed in good faith and with due diligence in accordance with the provisions contained in section 92C and the manner prescribed thereunder.
It is proposed to amend the aforesaid Explanation so as to include therein the reference of a specified domestic transaction for the purposes of said Explanation.
This amendment will take effect from 1st April, 2013 and will, accordingly, apply in relation to the assessment year 2013-2014 and subsequent assessment years.
