State when the Assessing Officer can invoke his power to determine Arm's Length Price of the transaction by himself. What would happen to the deduction claimed by the assessee under section 10AA or Chapter VIA of the Inc

When Assessing Officer can Invoke Power to Determine Arm's Length Price (ALP): The Assessing Officer (AO) may invoke the power to determine the Arm's Length Price (ALP) during the course of any proceeding for the assessment of income, if, on the basis of material or information or document in his possession, he is of the opinion that: The price charged or paid in an international transaction or specified domestic transaction has not been determined in accordance with sub-section (1) or (2) of section 92C of the Income Tax Act, 1961. Any information and document relating to an international transaction or specified domestic transaction have not been kept and maintained by the assessee in accordance with the provisions contained in section 92D(1) and the rules made in this behalf. The information or data used in the computation of the Arm's Length Price is not reliable or correct. The assessee has failed to furnish, within the specified time, any information or document which he is required to furnish by a notice issued under section 92D(3). However, before invoking the power to determine ALP, the Assessing Officer must provide an opportunity of being heard to the assessee. Consequences of Increase in ALP by Assessing Officer on Deductions under Section 10AA or Chapter VI-A: If the Arm's Length Price (ALP) is increased by the Assessing Officer, thereby enhancing the total income of the assessee, then no deduction under section 10AA (relating to units in Special Economic Zones) or under Chapter VI-A (relating to various deductions like 80C, 80D, 80G, etc.) of the Income Tax Act, 1961, shall be allowed in respect of the amount of income by which the total income of the assessee is enhanced after the computation of ALP. This means that the enhanced income due to ALP adjustment will be fully taxable without the benefit of these deductions.