Section 92(1) of the Income Tax Act
Income-tax Act, 2025: s.161
Section 92(1) falls under section 92 of the Income-tax Act, 1961, which corresponds to section 161 (Computation of income from international transaction and Specified domestic Transaction having regard to arm’s length price) of the Income-tax Act, 2025.
Read section 161 of the 2025 Act
Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.
The decision most relied on for Section 92(1) is Dabur India Ltd. v. Pr. CIT (89 Taxmann.com 78), cited in 19 of the 90 judgments on BharatTax that turn on this section.
Leading authorities on Section 92(1)
The Delhi High Court upheld an adjustment to the Arm's Length Price (ALP) for royalty payable by a foreign associated enterprise for using a brand name, even in the absence of a formal royalty agreement.
A transfer pricing adjustment re-characterizing equity investment as a loan is not permissible if it questions the commercial expediency of the assessee's transaction. Such adjustments are also not applicable for assessment years commencing on or before April 1, 2016, as per Section 92CE(1) proviso (ii).
