Notification No. 261

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

What this is

Notification No. 261 was published on 14 September 2006. 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

The Central Board of Direct Taxes, in exercise of the powers conferred by section 118 of the Income-tax Act, 1961, amends the subordination notification S.O. 279(E) dated 12th March, 2003, by substituting the whole Table in it. The substituted Table has five serial numbers, in each of which the Director General of Income-tax (International Taxation), Delhi is in column (2). It places the Transfer Pricing Officers at Delhi (five, at serial number 1) under the Director of Income-tax (Transfer Pricing), Delhi; those at Mumbai (seven, at serial number 2) under the Director of Income-tax (Transfer Pricing), Mumbai; those at Bangalore together with the Joint Commissioner of Income-tax (Transfer Pricing Officer), Hyderabad (four, at serial number 3) under the Director of Income-tax (Transfer Pricing), Bangalore; those at Kolkata (three, at serial number 4) under the Director of Income-tax (Transfer Pricing), Kolkata; and those at Chennai (three, at serial number 5) under the Director of Income-tax (Transfer Pricing), Chennai.

Who it reaches

Transfer Pricing Officers at Delhi, Mumbai, Bangalore, Hyderabad, Kolkata and Chennai
the Directors of Income-tax (Transfer Pricing) at those stations
the Director General of Income-tax (International Taxation), Delhi
assessees whose international transactions are referred 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. 261/2006, DATED 14-9-2006

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 and Company Affairs (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

Serial 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-ll), Delhi

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

(iv) Deputy Commissioner or Assistant Commissioner of Income-tax (Transfer Pricing Officer-IV), Delhi

(v) Deputy Commissioner or Assistant Commissioner of Income-tax (Transfer Pricing Officer-V), 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-ll), Mumbai

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

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

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

(vi) Deputy Commissioner or Assistant Commissioner of Income-tax

(Transfer Pricing Officer-VI), Mumbai

(vii) Deputy Commissioner or Assistant Commissioner of Income-tax (Transfer Pricing Officer-VII), 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-ll), Bangalore

(iii) Deputy Commissioner or Assistant Commissioner of Income-tax (Transfer Pricing Officer-Ill), Bangalore

(iv) 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-ll), Kolkata

(iii) Deputy Commissioner or Assistant Commissioner of Income-tax (Transfer Pricing Officer-Ill), 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-ll), Chennai

(iii) Deputy Commissioner or Assistant Commissioner of Income-tax (Transfer Pricing Officer-Ill), Chennai

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

What to watch

The notification states no date of commencement of its own; it is dated 14th September, 2006.
The whole Table is substituted, so the earlier entries in S.O. 279(E) stand replaced and not merely amended.
The Hyderabad Transfer Pricing Officer is placed under the Director of Income-tax (Transfer Pricing), Bangalore, at serial number 3.
It is an order of subordination under section 118; it does not by itself confer jurisdiction under section 120 over any case.

Where you meet it

In a reference of international transactions to a Transfer Pricing Officer, and in tracing the Director and Director General to whom that officer is subordinate.

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.