Amendment of section 92CA.
24. In section 92CA of the Income-tax Act, in sub-section (9), in the proviso, for the figures “2022”, the figures “2024” shall be substituted.
Notes on Clauses:
Clause 24 seeks to amend section 92CA of the Income-tax Act relating to Reference to Transfer Pricing Officer.
The said section, inter alia, empowers the Central Government to notify a scheme for the purposes of determination of the arm’s length price so as to impart greater efficiency, transparency and accountability by––
(a) eliminating the interface between the Transfer Pricing Officer and the assessee or any other person to the extent technologically feasible;
(b) optimising utilisation of the resources through economies of scale and functional specialisation;
(c) introducing a team-based determination of arm's length price with dynamic jurisdiction.
Sub-section (9) of the said section further provides that for the purposes of giving effect to the aforesaid scheme, the Central Government may by notification in the Official Gazette direct that any of the provisions of the Act shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified.
It is proposed to amend the proviso to the said sub-section (9), extending the date for issuing directions for the purposes of the said sub-section from 31st day of March, 2022 to 31st day of March, 2024.
This amendment will take effect from 1st April, 2022.
