Definitions of certain terms relevant to computation of arm's length price, etc
Section 92F of the Income-tax Act, 1961 deals with definitions of certain terms relevant to computation of arm's length price, etc. In sections 92, 92A, 92B, 92C, 92D and 92E, unless the context otherwise requires,— (i) "accountant" shall have the same meaning as in the Explanation below sub-section (2) of section 288; The Act came into force on 01 Apr 1962. Repealed by the Income-tax Act, 2025 with effect from 1 April 2026, but conduct before that date is still charged, tried and appealed under it.
In sections 92, 92A, 92B, 92C, 92D and 92E, unless the context otherwise requires,—
(i) "accountant" shall have the same meaning as in the Explanation below sub-section (2) of section 288;
(ii) "arm's length price" means a price which is applied or proposed to be applied in a transaction between persons other than associated enterprises, in uncontrolled conditions;
(iii) "enterprise" means a person (including a permanent establishment of such person) who is, or has been, or is proposed to be, engaged in any activity, relating to the production, storage, supply, distribution, acquisition or control of articles or goods, or know-how, patents, copyrights, trade-marks, licences, franchises or any other business or commercial rights of similar nature, or any data, documentation, drawing or specification relating to any patent, invention, model, design, secret formula or process, of which the other enterprise is the owner or in respect of which the other enterprise has exclusive rights, or the provision of services of any kind, or in carrying out any work in pursuance of a contract, or in investment, or providing loan or in the business of acquiring, holding, underwriting or dealing with shares, debentures or other securities of any other body corporate, whether such activity or business is carried on, directly or through one or more of its units or divisions or subsidiaries, or whether such unit or division or subsidiary is located at the same place where the enterprise is located or at a different place or places; (iiia) "permanent establishment", referred to in clause (iii), includes a fixed place of business through which the business of the enterprise is wholly or partly carried on;
(iv) "specified date" means the date one month prior to the due date for furnishing the return of income under sub-section (1) of section 139 for the relevant assessment year;
(v) "transaction" includes an arrangement, understanding or action in concert,— (A) whether or not such arrangement, understanding or action is formal or in writing; or (B) whether or not such arrangement, understanding or action is intended to be enforceable by legal proceeding.
Avoidance of income-tax by transactions resulting in transfer of income to non-residents.
Section 92F, The Income-tax Act, 1961 (Act 43 of 1961).
Now in the Income-tax Act
INCOME-TAX-ACT-2025 173 Definitions of certain terms relevant to determination of arm's length price, etc Official correspondence
Measured by comparing the text of the two provisions, not taken from an official correspondence table — there is no machine-readable one. See both texts side by side before relying on it.
Both regimes are live. The repealed enactment still governs what happened while it was in force. We never redirect one to the other.
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
- s. 92 Computation of income from international transaction having regard to arm's length price
- s. 92A Meaning of associated enterprise
- s. 92B Meaning of international transaction
- s. 92C Computation of arm's length price
- s. 92D Maintenance, keeping and furnishing of information and document by certain persons
- s. 92E Report from an accountant to be furnished by persons entering into international transaction or specified domestic transaction
- s. 139 Return of income
- s. 288 Appearance by authorised representative
Referred to by 20
- Finance Act s. 43 Amendment of section 92F
- Finance Act s. 45 Amendment of Section 92F
- s. 9 Income deemed to accrue or arise in India
- s. 10 Incomes not included in total income
- s. 40A Expenses or payments not deductible in certain circumstances
- s. 44DA Special provision for computing income by way of royal ties, etc., in case of non-residents
- s. 80HHF Deduction in respect of profits and gains from export or transfer of film software, etc
- s. 80-IA Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc
- s. 92A Meaning of associated enterprise
- s. 92CE Secondary adjustment in certain cases
- s. 94A Special measures in respect of transactions with persons located in notified jurisdictional area
- s. 115AD Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer
and 8 more
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
-
The Income Tax Officer 2 vs Sheetal Dharmeshbhai Patel
Court's Decision & Legal Precedent
The assessing officers' transfer pricing determinations must be guided by proper application of Section 92 and related transfer pricing provisions of the Income Tax Act. Where an assessee fails to demonstrate that the prices charged in cross-border related party transactions meet the arm's-length standard required by law, the revenue authorities are justified in making transfer pricing adjustments based on proper analysis of the facts and prescribed methodologies. The onus is on the assessee to prove the arm's-length nature of their transfer pricing, and inadequate or non-compliant documentation constitutes a failure to discharge this burden.
On this section: Requirements for maintaining transfer pricing documentation; the Court examined whether taxpayers had maintained and submitted proper documentation supporting their transfer pricing positions
-
Commissioner of Income Tax, International Taxation-3 vs Formula One World Championship Ltd.
Court's Decision & Legal Precedent
A non-resident foreign enterprise has a permanent establishment in India under Article 5 of the Double Taxation Avoidance Agreement when it has exclusive access and control over a fixed place of business through which it carries on business activities, even if such access is temporary and recurring annually, provided the arrangement is substantial and the enterprise exercises dominant control over the location and activities conducted therein. The substance of the transaction and the actual control exercised by the enterprise over the location and business activities are determinative factors, not merely the formal designation of parties or the temporary nature of the presence.
On this section: Definition of permanent establishment including a fixed place of business through which business of enterprise is wholly or partly carried on
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 92F
What have the courts held on Section 92F of the Income-tax Act?
The Income Tax Officer 2 vs Sheetal Dharmeshbhai Patel (03 Oct 2024) is the leading judgment on this section among those set out below: Requirements for maintaining transfer pricing documentation; the Court examined whether taxpayers had maintained and submitted proper documentation supporting their transfer pricing positions. Another 1 judgment on this section is set out below, all of them from the Supreme Court. They run from 2017 to 2024.
How do I find court cases under Section 92F of the Income-tax Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Income Tax Act 92F, section 92F Income Tax Act, section 92F of the Income-tax Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with The Income Tax Officer 2 vs Sheetal Dharmeshbhai Patel (03 Oct 2024).
What should I read with Section 92F of the Income-tax Act, and has it changed?
Its own text turns on section 92 (Computation of income from international transaction having regard to arm's length price), section 92A (Meaning of associated enterprise), section 92B (Meaning of international transaction), section 92C (Computation of arm's length price), and on 4 further provisions, so none of them can safely be read on its own. 20 other provisions in this corpus refer back to it. For anything done on or after 1 April 2026 the provision to read is Income-tax Act, 2025, section 173 (Definitions of certain terms relevant to determination of arm’s length price, etc.), which replaced it; conduct before that date is still charged, tried and appealed under this section.
When did Section 92F of the Income-tax Act come into force?
Section 92F of the Income-tax Act, cited as Income Tax Act 92F, came into force on 01 Apr 1962, having been enacted on 13 Sep 1961. It is no longer in force.
Other sections of this Act
- 10. Incomes not included in total income30885 words
- 2. Definitions11419 words
- 80HHF. Deduction in respect of profits and gains from export or transfer of film software, etc7148 words
- 80-IB. Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings5474 words
- 155. Other amendments5451 words
- 139. Return of income5400 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Recovered from the consolidated text published by the Income Tax Department, as amended by the Finance Act, 2026. India Code holds no record of this Act in any form. This page is not a substitute for legal advice.