Income Tax Act, 2025
Section 6: Ins. by Act 33 of 2009, s. 41 (w.e.f. 12009).
6. Ins. by Act 33 of 2009, s. 41 (w.e.f. 12009).
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1[92CC. Advance pricing agreement.—(1) The Board, with the approval of the Central
Government, may enter into an advance pricing agreement with any person, determining the arm’s length
price or specifying the manner in which arm’s length price is to be determined, in relation to an
international transaction to be entered into by that person.
(2) The manner of determination of arm’s length price referred to in sub-section (1), may include the
methods referred to in sub-section (1) of section 92C or any other method, with such adjustments or
variations, as may be necessary or expedient so to do.
(3) Notwithstanding anything contained in section 92C or section 92CA, the arm’s length price of any
international transaction, in respect of which the advance pricing agreement has been entered into, shall
be determined in accordance with the advance pricing agreement so entered.
(4) The agreement referred to in sub-section (1) shall be valid for such period not exceeding five
consecutive previous years as may be specified in the agreement.
(5) The advance pricing agreement entered into shall be binding—
(a) on the person in whose case, and in respect of the transaction in relation to which, the
agreement has been entered into; and
(b) on the 2[Principal Commissioner or] Commissioner, and the income-tax authorities
subordinate to him, in respect of the said person and the said transaction.
(6) The agreement referred to in sub-section (1) shall not be binding if there is a change in law or
facts having bearing on the agreement so entered.
(7) The Board may, with the approval of the Central Government, by an order, declare an agreement
to be void abinitio, if it finds that the agreement has been obtained by the person by fraud or
misrepresentation of facts.
(8) Upon declaring the agreement void ab initio,—
(a) all the provisions of the Act shall apply to the person as if such agreement had never been
entered into; and
(b) notwithstanding anything contained in the Act, for the purpose of computing any period of
limitation under this Act, the period beginning with the date of such agreement and ending on the date
of order under sub-section (7) shall be excluded:
Provided that where immediately after the exclusion of the aforesaid period, the period of
limitation, referred to in any provision of this Act, is less than sixty days, such remaining period shall
be extended to sixty days and the aforesaid period of limitation shall be deemed to be extended
accordingly.
(9) The Board may, for the purposes of this section, prescribe a scheme specifying therein the
manner, form, procedure and any other matter generally in respect of the advance pricing agreement.
The Board, with the approval of the Central
Government, may enter into an advance pricing agreement with any person, determining the arm’s length
price or specifying the manner in which arm’s length price is to be determined, in relation to an
international transaction to be entered into by that person.
The manner of determination of arm’s length price referred to in sub-section
of section 92C or any other method, with such adjustments or
variations, as may be necessary or expedient so to do.
Notwithstanding anything contained in section 92C or section 92CA, the arm’s length price of any
international transaction, in respect of which the advance pricing agreement has been entered into, shall
be determined in accordance with the advance pricing agreement so entered.
The agreement referred to in sub-section
shall be valid for such period not exceeding five
consecutive previous years as may be specified in the agreement.
The advance pricing agreement entered into shall be binding—
on the person in whose case, and in respect of the transaction in relation to which, the
agreement has been entered into; and
on the 2[Principal Commissioner or] Commissioner, and the income-tax authorities
subordinate to him, in respect of the said person and the said transaction.
The agreement referred to in sub-section
shall not be binding if there is a change in law or
facts having bearing on the agreement so entered.
The Board may, with the approval of the Central Government, by an order, declare an agreement
to be void abinitio, if it finds that the agreement has been obtained by the person by fraud or
misrepresentation of facts.
Upon declaring the agreement void ab initio,—
all the provisions of the Act shall apply to the person as if such agreement had never been
entered into; and
notwithstanding anything contained in the Act, for the purpose of computing any period of
limitation under this Act, the period beginning with the date of such agreement and ending on the date
of order under sub-section
shall be excluded:
Provided that where immediately after the exclusion of the aforesaid period, the period of
limitation, referred to in any provision of this Act, is less than sixty days, such remaining period shall
be extended to sixty days and the aforesaid period of limitation shall be deemed to be extended
accordingly.
The Board may, for the purposes of this section, prescribe a scheme specifying therein the
manner, form, procedure and any other matter generally in respect of the advance pricing agreement.