TMI BlogInsertion of new section 92CE. - Secondary adjustment in certain cases.X X X X Extracts X X X X X X X X Extracts X X X X ..... primary adjustment to transfer price,- (i) has been made suo motu by the assessee in his return of income; (ii) made by the Assessing Officer has been accepted by the assessee; (iii) is determined by an advance pricing agreement entered into by the assessee under section 92CC; (iv) is made as per the safe harbour rules framed under section 92CB; or (v) is arising as a result of res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s may be prescribed, shall be deemed to be an advance made by the assessee to such associated enterprise and the interest on such advance, shall be computed in such manner as may be prescribed. (3) For the purposes of this section,- (i) associated enterprise shall have the meaning assigned to it in sub-section (1) and sub-section (2) of section 92A; (ii) arm s length price shall have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thereby removing the imbalance between cash account and actual profit of the assessee. . - Clause 42 of the Bill seeks to insert a new section 92CE in the Income-tax Act relating to secondary adjustments in certain cases. The proposed new section 92CE provides that a secondary adjustment shall be made where a primary adjustment to transfer price, has been made suo motu by the assessee in his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e an advance made by the assessee to such associated enterprise and the interest on such advance, shall be computed in such manner as may be prescribed. It is also proposed to provide that the provisions of this section shall apply, if, the amount of primary adjustment made in case of the assessee in any previous year, exceeds one crore rupees. It is also proposed to provide that the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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