Notification No. 260

Amendment of the Income-tax Rules under section 118 of the Income-tax Act, 1961

What this is

Notification No. 260 was published on 15 December 2005. Its subject is Amendment of the Income-tax Rules under section 118 of the Income-tax Act, 1961.

This amends the Income-tax Rules. What it changes is the Rules, not the Act — and a rule can never take away what the section gives.

What it does

Acting under section 118 of the Income-tax Act, 1961, the Central Board of Direct Taxes amends S.O. 279(E) dated 12 March 2003 by substituting the whole Table in it. The substituted Table sets out, for each of five entries, the Chief Commissioner or Director General of Income-tax, the Commissioner or Director of Income-tax and the Transfer Pricing Officers subordinate to them. In every entry the controlling authority is the Director General of Income-tax (International Taxation), Delhi, and the Directors of Income-tax (Transfer Pricing) are at Delhi, Mumbai, Bangalore, Kolkata and Chennai, with three Transfer Pricing Officers at Delhi, five at Mumbai, three under Bangalore including one at Hyderabad, two at Kolkata and two at Chennai.

Who it reaches

Transfer Pricing Officers named in the substituted Table
assessees whose international transactions are referred for determination of arm's length price
Directors of Income-tax (Transfer Pricing) at the five stations
assessing officers making references to a Transfer Pricing Officer

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.118	s.238

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

NOTIFICATION NO. 260/2005, DATED 15-12-2005
In exercise of the powers conferred by section 118 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), number S.O. 279(E) dated the 12th March, 2003, namely :—
In the said notification, for the Table, the following Table shall be substituted, namely :—
TABLE

S. No.

Chief Commissioner/ Director General of Income-tax

Commissioner/Director of Income-tax

Transfer Pricing Officer

(1)

(2)

(3)

(4)

1.

Director General of Income-tax (International Taxation), Delhi

Director of Income-tax (Transfer Pricing), Delhi

( i) Joint Commissioner of Income- tax (Transfer Pricing Officer-I), Delhi

(ii) Joint Commissioner of Income- tax (Transfer Pricing Officer-II), Delhi

(iii) Joint Commissioner of Income-tax (Transfer Pricing Officer-III), Delhi

2.

Director General of Income-tax (International Taxation), Delhi

Director of Income-tax (Transfer Pricing), Mumbai

( i) Joint Commissioner of Income-tax (Transfer Pricing Officer-I), Mumbai

(ii) Joint Commissioner of Income-tax (Transfer Pricing Officer-II), Mumbai

(iii) Joint Commissioner of Income-tax (Transfer Pricing Officer-III), Mumbai

(iv) Joint Commissioner of Income-tax (Transfer Pricing Officer-IV), Mumbai

(v) Joint Commissioner of Income-tax (Transfer Pricing Officer-V), Mumbai

3.

Director General of Income-tax (International Taxation), Delhi

Director of Income-tax (Transfer Pricing), Bangalore

( i) Joint Commissioner of Income-tax (Transfer Pricing Officer-I), Bangalore

(ii) Joint Commissioner of Income-tax (Transfer Pricing Officer-II), Bangalore

(iii) Joint Commissioner of Income-tax (Transfer Pricing Officer), Hyderabad.

4.

Director General of Income-tax (International Taxation), Delhi

Director of Income-tax

(Transfer Pricing), Kolkata

( i) Joint Commissioner of Income-tax (Transfer Pricing Officer-I), Kolkata

(ii) Joint Commissioner of Income-tax (Transfer Pricing Officer-II), Kolkata

5.

Director

General of Income-tax (International Taxation), Delhi

Director of Income-tax

(Transfer Pricing), Chennai

(i) Joint Commissioner of Income-tax (Transfer Pricing Officer-I, Chennai

(ii) Joint Commissioner of Income-tax (Transfer Pricing Officer-II), Chennai

[F. No. 187/11/2005-ITA-I]

What to watch

The whole Table of S.O. 279(E) dated 12 March 2003 is substituted, so the earlier list of authorities ceases to have effect.
The notification is issued under section 118, which governs subordination of income-tax authorities, and so fixes who is subordinate to whom rather than territorial jurisdiction as such.
The Transfer Pricing Officer at Hyderabad is placed under the Director of Income-tax (Transfer Pricing), Bangalore.
Mumbai has five Transfer Pricing Officers, the largest complement in the Table.

Where you meet it

In a reference of an international transaction to the Transfer Pricing Officer and in the order determining the arm's length price, where the officer's authority and subordination are checked.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Notification No. 20/2024 [F. No. 279/Misc./66/2014-ITJ (Pt.)] / SO 539(E) — Ministry of Finance 6 February 2024
Notification No. 41/2023 [F. No. 187/1/2023-ITA-I] / SO 2625(E) — Ministry of Finance 14 June 2023
Notification No.122/2022 [F.No.187/3/2020-ITA-I]/ SO 5256(E) — Ministry of Finance 14 November 2022
Notification No.123/2022 [F.No.187/3/2020-ITA-I]/ SO 5257(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(ii)] 14 November 2022
Notification No. 82/2022 [F. No. 187/3/2020-ITA-I] / SO 3148(E) — Ministry of Finance 8 July 2022
Notification No. 21/2019 [F. No.187/2/2019-ITA-I] / SO 1362(E) — 4 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(ii)] 13 March 2019

What a notification is. A notification is made under a power the Act itself gives, and within that power it is law — unlike a circular, which only binds the department. Its reach is the reach of the enabling provision and no wider, and the date it carries decides from when it works.

Source: the Income Tax Department’s own published text — its page for this instrument.