Section 169
Section 169: giving effect to an advance pricing agreement
Section 169 deals with the practical follow-through once a taxpayer has entered into an Advance Pricing Agreement (APA) under Section 168 - it lets them (or an associated enterprise) file a modified return reflecting the agreed pricing, for the tax years the agreement covers.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
What the section allows
Irrespective of the normal return-filing framework in Section 263, where income is modified as a result of an APA entered into with any person, that person - or another person being an associated enterprise - may (or in some cases shall) furnish a modified return within the prescribed period, in the prescribed form and manner, modifying the return of income already filed for the relevant tax year(s) covered by the agreement.
This applies irrespective of whether or not any assessment, reassessment or recomputation proceeding for the relevant tax year is pending - the modified return can be filed to give effect to the APA regardless of where the normal assessment process stands.
Why this matters
An APA typically covers multiple future years (and can cover past years via "rollback"). Without a mechanism like this, a taxpayer who already filed returns for those years based on their own transfer pricing analysis would have no clean way to update those filings to match the agreed price once the APA is signed. Section 169 provides that mechanism.
Frequently asked questions
Who can file the modified return under Section 169?
The person who entered into the APA, or another associated enterprise, may furnish the modified return for the tax years covered by the agreement.
Does a pending assessment stop me from filing a modified return under this section?
No - Section 169 applies irrespective of whether an assessment, reassessment or recomputation proceeding for the relevant tax year is pending.
Is filing the modified return automatic once an APA is signed?
No - it must be furnished within the prescribed period, in the prescribed form and manner; it doesn't happen automatically just because the APA exists.
Related sections
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Get help with your Advance Pricing Agreement filingLast updated 9 September 2026