Amendment of section 92CD.
29. In section 92CD of the Income-tax Act, with effect from the 1st day of September, 2019,––
(a) in sub-section (3), for the words “proceed to assess or reassess or recompute the total income of the relevant assessment year”, the words “pass an order modifying the total income of the relevant assessment year determined in such assessment or reassessment, as the case may be,” shall be substituted;
(b) in sub-section (5), in clause (a), the words “of assessment, reassessment or re-computation of total income” shall be omitted.
Notes on Clauses:
Clause 29 of the Bill seeks to amend section 92CD of the Income-tax Act relating to effect to advance pricing agreement.
Sub-section (3) of the said section provides that if the assessment or reassessment proceedings for an assessment year relevant to a previous year to which the agreement applies have been completed before the expiry of period allowed for furnishing of modified return under sub-section (1), the Assessing Officer shall, in a case where modified return is filed in accordance with the provisions of sub-section (1), proceed to assess or reassess or recompute the total income of the relevant assessment year having regard to and in accordance with the agreement.
It is proposed to amend the said sub-section so as to provide that the Assessing Officer shall, in a case where modified return is filed in accordance with the provisions of sub-section (1), pass an order modifying the total income of the relevant assessment year, determined in such assessment or reassessment, as the case may be, having regard to and in accordance with the terms of the advance pricing agreement.
It is further proposed to make consequential amendment in subsection (5) of the said section.
These amendments will take effect from 1st September, 2019.
