NEW DELHI, FEB 01, 2023: ECTION 92D of the Income Tax Act mandates that a person who is involved in an international transaction or specified domestic transaction should regularly maintain the documents prescribed under rule 10D. The documents must be held for a period of 8 years from the relevant assessment year. Section 92D inter-alia, provides that every person who has entered an international transaction or a specified domestic transaction shall keep and maintain the information and documents as provided under rule 10D of the Income-tax Rules, 1962. As per sub-section (3) of section 92D of the Act, the Assessing Officer (AOs) or the Commissioner (Appeals) may during any proceedings under the Act require such person to furnish any information or document, as provided under rule 10D of the Rules, within a period of 30 days from the date of receipt of a notice issued in this regard. The Section further provided that on an application made by the assessee the time period of 30 days may be extended by an additional period of 30 days.
Various representations were being made that in several instances due to limited time available for TP proceedings, it may not be practically possible to provide minimum 30 days for producing these information or documents which in any case is already in possession of the assessee. Accordingly, the time period allowed for submission of information or documents in respect of international transactions or a specified domestic transaction is required to be rationalised to provide the AOs a reasonable amount of time to examine the information/documents submitted and complete the pending proceedings.
Accordingly, with a view to rationalize the time limit, the FM proposes to amend sub-section (3) of section 92D, as per which:
a) the Assessing Officer or the Commissioner (Appeals) may, during any proceeding under the Act, require any person referred to in clause (i) of sub-section (1) of section 92D of the Act i.e., who has entered an international transaction or specified domestic transaction, to furnish any information or document referred therein, within a period of ten days from the date of receipt of a notice issued in this regard; and
b) the Assessing Officer or the Commissioner (Appeals) may, on an application made by such person who has entered an international transaction or specified domestic transaction, extend the period of ten days by a further period not exceeding thirty days.
This amendment will take effect from 1st April, 2023. |