Advance Pricing Agreement cancellation requires hearing, written reasons, and notice where compliance failures or reporting defects occur. Cancellation of an Advance Pricing Agreement may be ordered where compliance audit shows non-compliance, the annual compliance report is delayed or materially erroneous, or linked rule provisions require cancellation. The assessee must be given an opportunity of being heard, and in bilateral or multilateral cases the Indian competent authority must communicate the proposed cancellation and reasons to the foreign competent authority. The cancellation order must be in writing, state reasons, specify the effective date where applicable, and be intimated to the jurisdictional Assessing Officer and Transfer Pricing Officer.