Income Tax Act, 2025
Section 2: The words “and super-tax” omitted by Act 10 of 1965, s. 28 (w.e.f. 11965).
2. The words “and super-tax” omitted by Act 10 of 1965, s. 28 (w.e.f. 11965).
3. Subs. by Act 5 of 1964, s. 20, for “any relief due under this section” (w.e.f. 11964).
439
(iv) the expression “income-tax” in relation to any country includes any excess profits tax or
business profits tax charged on the profits by the Government of any part of that country or a local
authority in that country.
CHAPTER X
SPECIAL PROVISIONS RELATING TO AVOIDANCE OF TAX
1[92. Computation of income from international transaction having regard to arm’s length
price.—(1) Any income arising from an international transaction shall be computed having regard to the
arm’s length price.
Explanation.—For the removal of doubts, it is hereby clarified that the allowance for any expense or
interest arising from an international transaction shall also be determined having regard to the arm’s
length price.
(2) Where in an 2[international transaction or specified domestic transaction], two or more associated
enterprises enter into a mutual agreement or arrangement for the allocation or apportionment of, or any
contribution to, any cost or expense incurred or to be incurred in connection with a benefit, service or
facility provided or to be provided to any one or more of such enterprises, the cost or expense allocated or
apportioned to, or, as the case may be, contributed by, any such enterprise shall be determined having
regard to the arm’s length price of such benefit, service or facility, as the case may be.
3[(2A) Any allowance for an expenditure or interest or allocation of any cost or expense or any
income in relation to the specified domestic transaction shall be computed having regard to the arm’s
length price.]
(3) The provisions of this section shall not apply in a case where the computation of income
under4[sub-section (1) or sub-section (2A)] or the determination of the allowance for any expense or
interest under 5[sub-section (1) or sub-section (2A)], or the determination of any cost or expense allocated
or apportioned, or, as the case may be, contributed under sub-section (2) 3[or sub-section (2A)], has the
effect of reducing the income chargeable to tax or increasing the loss, as the case may be, computed on
the basis of entries made in the books of account in respect of the previous year in which the
2[international transaction or specified domestic transaction] was entered into.]
92A. Meaning of associated enterprise.—(1) For the purposes of this section andsections
92, 92B, 92C, 92D, 92E and 92F, “associated enterprise”, in relation to another enterprise, means an
enterprise—
(a) which participates, directly or indirectly, or through one or more intermediaries, in the
management or control or capital of the other enterprise; or
(b) in respect of which one or more persons who participate, directly or indirectly, or through one
or more intermediaries, in its management or control or capital, are the same persons who participate,
directly or indirectly, or through one or more intermediaries, in the management or control or capital
of the other enterprise.
1. Subs. by Act 20 of 2002, s. 39, for section 92 (w.e.f. 12002).earlier subs. by Act 14 of 2001, s. 49 (w.e.f. 12002).
the expression “income-tax” in relation to any country includes any excess profits tax or
business profits tax charged on the profits by the Government of any part of that country or a local
authority in that country.
CHAPTER X
SPECIAL PROVISIONS RELATING TO AVOIDANCE OF TAX
1[92. Computation of income from international transaction having regard to arm’s length
price.—
Any income arising from an international transaction shall be computed having regard to the
arm’s length price.
Explanation.—For the removal of doubts, it is hereby clarified that the allowance for any expense or
interest arising from an international transaction shall also be determined having regard to the arm’s
length price.
Where in an 2[international transaction or specified domestic transaction], two or more associated
enterprises enter into a mutual agreement or arrangement for the allocation or apportionment of, or any
contribution to, any cost or expense incurred or to be incurred in connection with a benefit, service or
facility provided or to be provided to any one or more of such enterprises, the cost or expense allocated or
apportioned to, or, as the case may be, contributed by, any such enterprise shall be determined having
regard to the arm’s length price of such benefit, service or facility, as the case may be.
3[
Any allowance for an expenditure or interest or allocation of any cost or expense or any
income in relation to the specified domestic transaction shall be computed having regard to the arm’s
length price.]
The provisions of this section shall not apply in a case where the computation of income
under4[sub-section
or sub-section
or sub-section
3[or sub-section
For the purposes of this section andsections
92, 92B, 92C, 92D, 92E and 92F, “associated enterprise”, in relation to another enterprise, means an
enterprise—
which participates, directly or indirectly, or through one or more intermediaries, in the
management or control or capital of the other enterprise; or
in respect of which one or more persons who participate, directly or indirectly, or through one
or more intermediaries, in its management or control or capital, are the same persons who participate,
directly or indirectly, or through one or more intermediaries, in the management or control or capital
of the other enterprise.
1. Subs. by Act 20 of 2002, s. 39, for section 92 (w.e.f. 12002).earlier subs. by Act 14 of 2001, s. 49 (w.e.f. 12002).