Section 118 — Relief in tax payable under section 206(1) due to operation of section 206(1)(i)

(1) For the purposes of section 206(1)(i), the tax payable by the assessee company under section 206(1), for the tax year referred to in that section, shallbe reduced by the following amount, namely:—
(A–B) – (C–D),
Where,—
A = tax payable by the assessee company under section 206(1) on the book profit of the tax year including the past income and where there is no taxpayable, the value shall be taken as zero;
B = tax payable by the assessee company under section 206(1) on the book profit of the tax year excluding the past income and where there is no taxpayable, the value shall be taken as zero;
C = aggregate of tax payable by the assessee company under section 206(1) on the book profit of past year or years, referred to in item D, after increasingthe book profit with the relevant past income of such year or years and where there is no tax payable, the value shall be taken as zero; and
D = aggregate of tax payable by the assessee company under section 206(1) on the book profit of those past year or years to which the past income belongsand where there is no tax payable, the value shall be taken as zero.
(2) If the value of (A–B) – (C–D) is negative, its value shall be deemed to be zero.
(3) For the purposes of sub-rule (1) past income shall be the amount of income of past year or years included in the book profit of the tax year on account of anadvance pricing agreement entered into by the assessee under section 168 or on account of secondary adjustment required to be made under section 170.
(4) On application of provision of sub-rule (1), the tax credit allowed to the assessee under section 206(1)(m) shall be reduced by the amount allowed undersub-rule (1).
(5) A claim for relief under section 206(1)(i) shall be made by an assessee company in Form No. 53 by uploading signed printout of said Form in the mannerspecified by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, and which shall beverified by the person who is authorised to verify the return of income of the assessee company under section 265.
Renewing an agreement.
119. Request for renewal of an agreement may be made as a new application in Form No. 54 for agreement, using the same procedure as outlined in theserules except pre-filing consultation as referred to in rule 105.