Effect to advance pricing agreement
Effect to advance pricing agreement.
169. 23[(1) Irrespective of anything to the contrary contained in section 263, where an income is modified as a result of advance pricing agreement entered into with any person then, such person shall, or any other person being an associated enterprise may,—
| (a) | furnish a return or a modified return in accordance with and limited to the agreement; and | |
| (b) | the time period for furnishing such return or modified return shall be three months from the end of the month in which the agreement was entered into, |
where the tax years relevant for such return or modified return shall be the years covered by such agreement.]
(2) Except as provided in this section, all other provisions of this Act shall apply accordingly as if the modified return is a return furnished under section 263.
(3) Where a modified return is furnished under sub-section (1), and assessment or reassessment proceedings, in respect of a tax year to which the agreement applies, were initiated before the filing of such return then,—
| (a) | if such proceedings have been completed before the filing of such return, the Assessing Officer shall pass an order modifying the total income of the relevant tax year; or | |
| (b) | if such proceedings are pending on the date of filing of modified return, the Assessing Officer shall proceed to complete them, |
as per the agreement after taking into consideration the modified return so furnished.
(4) Irrespective of anything contained in section 275 or 286 or 296,—
| (a) | the order in respect of a case falling under sub-section (3)(a) shall be passed within one year from the end of the financial year in which the modified return under sub-section (1) is furnished; | |
| (b) | in respect of a case falling under sub-section (3)(b), the period of limitation as provided in section 275 or 286 or section 296 for completion of pending assessment or reassessment proceedings shall be extended by twelve months. |
(5) For the purposes of this section,—
| (a) | "agreement" means an agreement referred to in section 168(1); | |
| (b) | the assessment or reassessment proceedings for a tax year shall be deemed to have been completed where— |
| (i) | an assessment or reassessment order has been passed; or | |
| (ii) | no notice has been issued under section 270(8) till the expiry of the limitation period provided under the said section. |