Friday 6 December 2013

Transfer Pricing - Clarification in respect of applicability of Section 144C


Sec 144C(1) requires that the AO shall, notwithstanding anything to the contrary contained in this Act, in the first instance, forward a draft of the proposed order of assessment (hereinafter in this section referred to as the draft order) to the eligible assessee if he proposes to make, on or after the 1st day of October, 2009, any variation in the income or loss returned which is prejudicial to the interest of such assessee.”


Position before this circular: Earlier, as per para 45.5 of Circular no. 05/2010 dated 03-06-2010, provisions of Section 144C was to be applied in relation to the AY 2010-11 and subsequent assessment years.

 
Clarification by CBDT: Vide Circular No. 09/2013 dated 19-11-2013, CBDT has clarified that section 144C is applicable to any order which proposes to make variation in income or loss returned by an eligible assessee, on or after 1st October, 2009 irrespective of the assessment year to which it pertains.

 
Rahul Jain

rahuljain@rpmd.in

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