Income Tax Act, 2025
Section 1: Ins. by Act 25 of 2014, s. 33 (w.e.f. 12014).
1. Ins. by Act 25 of 2014, s. 33 (w.e.f. 12014).
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(b) no notice has been issued under sub-section (2) of section 143 till the expiry of the
limitation period provided under the said section.]
1[92CE. Secondary adjustment in certain cases.—(1) Where a primary adjustment to transfer
price,—
(i) has been made suomotu 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 resolution of an assessment by way of the mutual agreement procedure
under an agreement entered into under section 90 or section 90A for avoidance of double taxation,
the assessee shall make a secondary adjustment:
Provided that nothing contained in this section shall apply, if,—
(i) the amount of primary adjustment made in any previous year does not exceed one crore
rupees; and
(ii) the primary adjustment is made in respect of an assessment year commencing on or before the
1st day of April, 2016.
(2) Where, as a result of primary adjustment to the transfer price, there is an increase in the total
income or reduction in the loss, as the case may be, of the assessee, the excess money which is available
with its associated enterprise, if not repatriated to India within the time as 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 the meaning assigned to it in clause (ii) of section 92F;
(iii) “excess money” means the difference between the arm’s length price determined in primary
adjustment and the price at which the international transaction has actually been undertaken;
(iv) “primary adjustment” to a transfer price, means the determination of transfer price in
accordance with the arm’s length principle resulting in an increase in the total income or reduction in
the loss, as the case may be, of the assessee;
(v) “secondary adjustment” means an adjustment in the books of account of the assessee and its
associated enterprise to reflect that the actual allocation of profits between the assessee and its
associated enterprise are consistent with the transfer price determined as a result of primary
adjustment, thereby removing the imbalance between cash account and actual profit of the assessee.]
no notice has been issued under sub-section
of section 143 till the expiry of the
limitation period provided under the said section.]
1[92CE. Secondary adjustment in certain cases.—
Where a primary adjustment to transfer
price,—
has been made suomotu by the assessee in his return of income;
made by the Assessing Officer has been accepted by the assessee;
is determined by an advance pricing agreement entered into by the assessee under section
92CC;
is made as per the safe harbour rules framed under section 92CB; or
is arising as a result of resolution of an assessment by way of the mutual agreement procedure
under an agreement entered into under section 90 or section 90A for avoidance of double taxation,
the assessee shall make a secondary adjustment:
Provided that nothing contained in this section shall apply, if,—
the amount of primary adjustment made in any previous year does not exceed one crore
rupees; and
the primary adjustment is made in respect of an assessment year commencing on or before the
1st day of April, 2016.
Where, as a result of primary adjustment to the transfer price, there is an increase in the total
income or reduction in the loss, as the case may be, of the assessee, the excess money which is available
with its associated enterprise, if not repatriated to India within the time as 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.
For the purposes of this section,—
“associated enterprise” shall have the meaning assigned to it in sub-section
and
sub-section
of section 92A;
“arm’s length price” shall have the meaning assigned to it in clause
of section 92F;
“excess money” means the difference between the arm’s length price determined in primary
adjustment and the price at which the international transaction has actually been undertaken;
“primary adjustment” to a transfer price, means the determination of transfer price in
accordance with the arm’s length principle resulting in an increase in the total income or reduction in
the loss, as the case may be, of the assessee;
“secondary adjustment” means an adjustment in the books of account of the assessee and its
associated enterprise to reflect that the actual allocation of profits between the assessee and its
associated enterprise are consistent with the transfer price determined as a result of primary
adjustment, thereby removing the imbalance between cash account and actual profit of the assessee.]