CMA Final · Direct Tax Laws and International Taxation · Transfer Pricing
A reference was made to the Transfer Pricing Officer under section 166(1) for a tax year. The limitation period for making the assessment order under the relevant section expires on 31 March of a year. By which date must the Transfer Pricing Officer make his order under section 166(6), as per the sub-section (7) in force from 1 April 2026?
The order must be made on or before 31 January of that year. Sub-section (7), as substituted from 1 April 2026, ties the deadline to one month before the month of limitation expiry, not to sixty days before expiry as in the earlier wording.
- A31 January of that yearCorrect
- B31 January of the preceding year
- C30 January of that year, being sixty days before expiry
- D28 February of that year
Explanation
Sub-section (7), as substituted w.e.f. 1-4-2026, requires the order before one month prior to the month in which limitation expires. Where expiry is 31 March, the order is due on or before 31 January. The old rule of sixty days before expiry no longer applies, which makes the sixty-day option wrong.
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