Advance pricing agreement adjustment permits recomputation of book profit and tax on assessee application with prescribed procedure.

The amendment inserts "dividend" into specified clauses of Explanation 1 to section 115JB, thereby including dividends among receipts relevant to book profit. It also adds sub-section (2D) permitting a company, on application to the Assessing Officer, to obtain recomputation of past years' book profit and tax where current-year book profit increased because prior-year income was included due to an advance pricing agreement or a secondary adjustment; recomputation follows prescribed procedure, section 154 applies with a four-year reckoning from receipt of the application, availability is subject to non-utilisation of the tax credit under section 115JAA, and no interest is payable on refunds arising from this provision.

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