Extension of time limit available to TPO for making an order [Section 92CA(3A)]
Effective from: 1st June, 2016
(i) As per section 92CA(3A), the Transfer Pricing Officer (TPO) has to pass his order 60 days prior to the date on which the limitation for making assessment expires.
(ii) In many cases, it becomes necessary to seek information from foreign jurisdictions for the purpose of determining the arm’s length price by the TPO. At times, proceedings before the TPO may also be stayed by a court order.
(iii) Taking into consideration such cases, a proviso has been inserted in section 92CA(3A) to provide that where assessment proceedings are stayed by any court or where a reference for exchange of information has been made by the competent authority under an agreement referred to in section 90 or 90A, the time available to the Transfer Pricing Officer for making an order after excluding the time for which assessment proceedings were stayed or the time taken for receipt of information, as the case may be, is less than 60 days, then such remaining period shall be extended to 60 days.