Text of ITO Section 108A

Report from independent chartered accountant or cost and management accountant.

(1) Where the Commissioner is of the opinion that a transaction has not been declared at arm’s length, the Commissioner may obtain a report from an independent chartered accountant or cost and management accountant to determine the fair market value of the asset, product, expenditure, or service at the time of the transaction.

(2) The scope, terms, and conditions of the report shall be as may be prescribed.

(3) Where the Commissioner is satisfied with the report of the independent chartered accountant or cost and management accountant, the fair market value of the asset, product, expenditure, or service determined in the report shall be treated as definite information for the purpose of sub-section (8) of section 122.

(4) Where the Commissioner is not satisfied with the report of the independent chartered accountant or cost and management accountant, the Commissioner may record reasons for being not satisfied with the report and seek a report from another independent chartered accountant or cost and management accountant to determine the fair market value of the asset, product, expenditure, or service at the time of the transaction.

(5) The Commissioner shall seek a report under sub-section (1) or sub-section (3), as the case may be, with the prior approval of the Board.