Section 92CA - Reference to Transfer Pricing Officer - Income-tax Act, 1961

1 [Reference to Transfer Pricing Officer. 92CA. (1) Where any person, being the assessee, has entered into an 6 [ international transaction or specified domestic transaction ] in any previous year, and the Assessing Officer considers it necessary or expedient so to do, he may, with the previous approval of the 9 [Principal Commissioner or Commissioner], refer the computation of the arm's length price in relation to the said 6 [ international transaction or specified domestic transaction ] under section 92C to the Transfer Pricing Officer. (2) Where a reference is made under sub-section (1), the Transfer Pricing Officer shall serve a notice on the assessee requiring him to produce or cause to be produced on a date to be specified therein, any evidence on which the assessee may rely in support of the computation made by him of the arm's length price in relation to the 6 [ international transaction or specified domestic transaction ] referred to in sub-section (1). 4 [(2A) Where 14 [ any other international transaction or specified domestic transaction [other than an international transaction or a specified domestic transaction ] referred under sub-section (1)], comes to the notice of the Transfer Pricing Officer during the course of the proceedings before him, the provisions of this Chapter shall apply as 15 [ if such other international transaction or a specified domestic transaction is an international transaction or a specified domestic transaction ] referred to him under sub-section (1).] 7 [ (2B) Where in respect of an international transaction 16 [ or a specified domestic 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 17 [ such transaction is an international transaction or a specified domestic transaction ] referred to him under sub-section (1). ] 8 [ (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. ] (3) On the date specified in the notice under sub-section (2), or as soon thereafter as may be, after hearing such evidence as the assessee may produce, including any information or documents referred to in sub-section (3) of section 92D and after considering such evidence as the Transfer Pricing Officer may require on any specified points and after taking into account all relevant materials which he has gathered, the Transfer Pricing Officer shall, by order in writing, determine the arm's length price in relation to the 6 [ international transaction or specified domestic transaction ] in accordance with sub-section (3) of section 92C and send a copy of his order to the Assessing Officer and to the assessee. 2 [(3A) Where a reference was made under sub-section (1) before the 1st day of June, 2007 but the order under sub-section (3) has not been made by the Transfer Pricing Officer before the said date, or a reference under sub-section (1) is made on or after the 1st day of June, 2007, an order under sub-section (3) may be made at any time before sixty days prior to the date on which the period of limitation referred to in section 153, or as the case may be, in section 153B for making the order of assessment or reassessment or recomputation or fresh assessment, as the case may be, expires.] 10 [ Provided that in the circumstances referred to in clause (ii) or clause (x) of Explanation (1) to section 153, if the period of limitation available to the Transfer Pricing Officer for making an order is less than sixty days, such remaining period shall be extended to sixty days and the aforesaid period of limitation shall be deemed to have been extended accordingly. ] 3 [(4) On receipt of the order under sub-section (3), the Assessing Officer shall proceed to compute the total income of the assessee under sub-section (4) of section 92C in conformity with the arm's length price as so determined by the Transfer Pricing Officer.] (5) With a view to rectifying any mistake apparent from the record, the Transfer Pricing Officer may amend any order passed by him under sub-section (3), and the provisions of section 154 shall, so far as may be, apply accordingly. (6) Where any amendment is made by the Transfer Pricing Officer under sub-section (5), he shall send a copy of his order to the Assessing Officer who shall thereafter proceed to amend the order of assessment in conformity with such order of the Transfer Pricing Officer. (7) The Transfer Pricing Officer may, for the purposes of determining the arm's length price under this section, exercise all or any of the powers specified in clauses (a) to (d) of sub-section (1) of section 131 or sub-section (6) of section 133 5 [or section 133A]. 11 [ (8) The Central Government may make a scheme, by notification in the Official Gazette, for the purposes of determination of the arm's length price under sub-section (3), 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. (9) The Central Government may, for the purpose of giving effect to the scheme made under sub-section (8), by notification in the Official Gazette, direct that any of the provisions of this Act shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in the notification: Provided that no direction shall be issued after the 31st day of March, 13 [ 2025 ] . (10) Every notification issued under sub-section (8) and sub-section (9) shall, as soon as may be after the notification is issued, be laid before each House of Parliament. ] Explanation .-For the purposes of this section, Transfer Pricing Officer means a Joint Commissioner or Deputy Commissioner or Assistant Commissioner authorised by the Board to perform all or any of the functions of an Assessing Officer specified in sections 92C and 92D in respect of any person or class of persons. ] ------------------------------- Notes:- 1. Inserted by the Finance Act, 2002, w.e.f. 1-6-2002. 2. Inserted by the Finance Act, 2007, w.e.f . 1-6-2007. 3. Substituted by the Finance Act, 2007, w.e.f. 1-6-2007. Prior to its substitution, sub-section (4) read as under : (4) On receipt of the order under sub-section (3), the Assessing Officer shall proceed to compute the total income of the assessee under sub-section (4) of section 92C having regard to the arm's length price determined under sub-section (3) by the Transfer Pricing Officer. 4. Inserted vide Finance Act, 2011 w.e.f. 1.6.2011 5. Inserted vide Finance Act, 2011 w.e.f. 1.6.2011 6. Substituted vide Finance Act, 2012, w.e.f. 01-04-2013, before it was read as:- international transaction 7. Inserted vide Finance Act, 2012, w.e.f. 01-04-2002, 8. Inserted vide Finance Act, 2012, w.e.f. 01-07-2012, 9. Substituted vide THE FINANCE (No. 2) ACT, 2014 w.e.f. 1st day of June, 2013 10. Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of June, 2016 11. Inserted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-11-2020 12. Substituted vide Finance Act, 2022 w.e.f. 01-04-2022 before it was read as 2022 13. Substituted vide THE FINANCE ACT, 2024 dated 15-02-2024 w.e.f. 01-04-2024 before it was read as, 12 [ 2024 ] 14. Substituted vide Section 27 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-04-2025 before it was read as, any other international transaction [other than an international transaction 15. Substituted vide Section 27 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-04-2025 before it was read as, if such other international transaction is an international transaction 16. Inserted vide Section 27 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-04-2025 17. Substituted vide Section 27 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-04-2025 before it was read as, such transaction is an international transaction