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f section 92C of the Act [10] ? read with Rule 10B [11] ? provide for computation techniques to determine the arm's length price. After giving detailed descriptions of the abovementioned methods, the rules state that on analysing the transaction, the method which is found to be the most appropriate, is applied for computation of arm's length price [12] ,? the implementation of which is carried on in the manner specified by the rules made by the Board. In a scenario where more than one price can be determined by the most appropriate method, a provision is made to use the arithmetical mean of such two or more prices as the arm's length price [13] .? The provision also lays down a safe harbour where the tax authorities accept the transfer price determined by the tax payers.

Even though under the transfer pricing provisions of the Income Tax Act, the assessee has the first opportunity to determine the Arm's Length Price, section 92C(3) empowers the Assessing Officer (AO) to determine the arm's length price in relation to the transaction where he is of the opinion that the price charged in the international transaction has not been determined in accordance with sub-sections (1) and (2), or information and documents relating to the international transaction have not been kept and maintained by the assessee in accordance with the provisions contained in sub-section (1) of Section 92D and the rules made in this behalf, or the information or data used in computation of the arm's length price is not reliable or correct, or the assessee has failed to furnish within the specified time, any information or document which he was required to furnish by a notice issued under sub-section (3) of section 92D. This opinion however, must be formed only in the course of the proceedings and must be based on material information or documents. The assessee must be given an opportunity of being heard [14] .

If the assessee has determined the arm's length price in accordance with the statutory requirements, and the data used for determining the arm's length price is reliable and correct, there can be no intervention by the Assessing Officer.? However, if in the process of re-determination of the of arm's length price by the Assessing Officer, it is found that the transfer price is not in compliance with the arm's length principle, a penalty can be levied on the party as per Section 271(1)(c). [15] ? This penalty can range between one thousand to twenty five thousand rupees, but cannot exceed three times the amount of tax sought to be evaded. On the other hand, no penalty is levied where the assessee proves to the satisfaction of the Assessing Officer or the Commissioner of Income Tax (Appeals) that the price charged or paid in such transactions has been determined in accordance with section 92C in good faith [16] ? and with due diligence.

Section 92D of the Act read with rule 10D of the Rules requires every person who has undertaken an international transaction to keep and maintain such information and documents specified by the Board. Such information is required to be presented within thirty days of demand by the Assessing Officer or Commissioner (Appeals) during the course of any proceedings under the Act. The section 92E of the act along with Rule 10E makes it mandatory for every person who has entered into an international transaction during a previous year to obtain a report from an accountant and furnish such report on本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。