Income Tax Act, 2025
Section 7: Ins. by Act 23 of 2012, s. 39 (w.e.f. 12002).
7. Ins. by Act 23 of 2012, s. 39 (w.e.f. 12002).
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1[(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
2[internationaltransaction 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.
3[(3A) Wherea 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:]
4[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) ofsection
131 or sub-section (6) of section 133 5[or section 133A].
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 section 92C and 92D in respect of any
person or class of persons.]
6[92CB.Power of Board to make safe harbour rules.—(1) The determination of arm’s length price
under section 92C or section 92CA shall be subject to safe harbour rules.
(2) The Board may, for the purposes of sub-section (1), make rules for safe harbour.
Explanation.—For the purposes of this section, “safe harbour” means circumstances in which the
income-tax authorities shall accept the transfer price declared by the assessee.]
Nothing contained in sub-section
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.]
On the date specified in the notice under sub-section
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
2[internationaltransaction or specified domestic] transaction in accordance with sub-section
of section
92C and send a copy of his order to the Assessing Officer and to the assessee.
3[
Wherea reference was made under sub-section
before the 1st day of June, 2007 but the
order under sub-section
has not been made by the Transfer Pricing Officer before the said date, or a
reference under sub-section
is made on or after the 1st day of June, 2007, an order under sub-section
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:]
4[Provided that in the circumstances referred to in clause
or clause
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[
On receipt of the order under sub-section
of section 92C in conformity with the arm’s length
price as so determined by the Transfer Pricing Officer.]
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
Where any amendment is made by the Transfer Pricing Officer under sub-section
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
to
of sub-section
ofsection
131 or sub-section
of section 133 5[or section 133A].
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 section 92C and 92D in respect of any
person or class of persons.]
6[92CB.Power of Board to make safe harbour rules.—
The determination of arm’s length price
under section 92C or section 92CA shall be subject to safe harbour rules.
The Board may, for the purposes of sub-section