(1) Notwithstanding anything contained in section 235 of this Act-

(a) subject to the prior approval of the Board, the Deputy Commissioner of Taxes may refer the matter of determination of arm’s length price under section 235 to the Transfer Pricing Officer;

(b) the Transfer Pricing Officer may, subject to the prior approval of the Board, initiate arm’s length pricing of any international transaction.

(2) Where any reference or proceeding is to be initiated under subsection (1), the transfer pricing officer shall issue to produce or cause to be produced to the taxpayer on the date specified in the notice the evidence relied upon by the taxpayer for computing the arm’s length price of the international transaction under consideration.

(3) The transfer pricing officer may, by order in writing under section 235, after considering the evidence presented to him or if he seeks any evidence from the taxpayer or any other person at any particular point, taking into account the evidence received or available to him and all relevant documents collected by him and determine the arm’s length price in respect of the transaction and send a copy thereof to the Deputy Commissioner of Taxes.

(4) The Deputy Commissioner of Taxes shall, on receipt of a copy of the order under sub-section (3), proceed to compute the total income of the taxpayer at the arm’s length price determined by the Transfer Pricing Officer and if, in computing such income, the income of an exempted person is to be computed, the Transfer Pricing Officer shall adjustment received on the basis of arm’s length price determined by the said person shall be treated as income and the said income shall be taxed at the regular rate.

(5) The Transfer Pricing Officer shall, on his own discovery or after it has been brought to his notice by the taxpayer or any other income-tax authority, that any order passed by him under sub-section (3) contains any such error as is apparent from the record, he shall correct such error and accordingly the provisions of section 330 shall, as far as possible, apply in this case.

(6) If any amendment is made under sub-section (5), the Transfer Pricing Officer shall send a copy of his order to the Deputy Commissioner of Taxes who shall thereafter proceed to amend the assessment order in accordance with the said order.