Clause 31 - Amendment of section 115JB. - Finance Bill, 2021

Amendment of section 115JB. 31. In section 115JB of the Income-tax Act, in sub-section (2), (a) in Explanation 1, (i) in clause (fb), in sub-clause (B), for the words interest, royalty , the words interest, dividend, royalty shall be substituted; (ii) in the long line, in clause (iid), in sub-clause (B), for the words interest, royalty , the words interest, dividend, royalty shall be substituted; (b) after sub-section (2C), the following sub-section shall be inserted, namely: ── (2D) In the case of an assessee being a company, where there is an increase in book profit of the previous year due to income of past year or years included in the book profit on account of an advance pricing agreement entered into by the assessee under section 92CC or on account of secondary adjustment required to be made under section 92CE, the Assessing Officer shall, on an application made to him in this behalf by the asssessee, recompute the book profit of the past year or years and tax payable, if any, by the assessee during the previous year under sub-section (1), in such manner as may be prescribed and the provisions of section 154 shall, so far as may be, apply and the period of four years specified in sub-section (7) of that section shall be reckoned from the end of the financial year in which the said application is received by the Assessing Officer. .