Skip to content

CS Professional · Advanced Direct Tax Laws and Practice · Transfer Pricing and General Anti Avoidance Rules (GAAR)

Under section 377 of the Income-tax Act, 2025, within what time may a Competent Authority ordinarily revise an order of the Transfer Pricing Officer as erroneous and prejudicial to revenue?

The Competent Authority can revise an erroneous, revenue-prejudicial order, including one passed by the Transfer Pricing Officer, only within two years from the end of the financial year in which that order was passed, subject to the exclusions and exceptions in the section.

  1. ATwo years from the end of the financial year in which the order sought to be revised was passedCorrect
  2. BSix years from the end of the relevant assessment year
  3. COne year from the date of the order
  4. DFour years from the date of the order

Explanation

Section 377(4) bars an order under sub-section (1) after two years from the end of the financial year in which the order sought to be revised was passed. Section 377(1) and (2)(a) extend the revision power to orders of the Transfer Pricing Officer. The other periods are not in the section.

Did you get it right without looking?

One question tells you little. A timed set on Transfer Pricing and General Anti Avoidance Rules (GAAR) shows your real accuracy, how long you take and where you lose marks.

Practise Transfer Pricing and General Anti Avoidance Rules (GAAR)Free diagnostic mock

More Transfer Pricing and General Anti Avoidance Rules (GAAR) questions