111. Roll back of Agreement.—

(1) Subject to the provisions of this rule, the agreement may provide for determining the arm's length price in relation to an international transaction, or specify the manner in which such arm‘s length price shall be determined during the rollback year (herein referred to as the rollback provision).

(2) The rollback provision shall be subject to the following: —

(a) the international transaction is same as the international transaction to which the agreement (other than the rollback provision) applies;

(b) the return of income for the relevant rollback year has been or is furnished by the applicant within the time specified in section 263(1)(c);

(c) the report in respect of the international transaction had been furnished within the time specified in clause (b);

(d) the applicability of rollback provision, in respect of an international transaction, has been requested by the applicant for all the rollback years in which the said international transaction has been undertaken by the applicant; and

(e) the application seeking rollback in Form No. 51 has been made in accordance with sub-rule (5).

(3) Irrespective of anything contained in sub-rule (2), the rollback provision shall not be provided in respect of an international transaction for a rollback year, if—

(a) the determination of arm's length price of the said international transaction for the said year has

been subject matter of an appeal before the Appellate Tribunal and the Appellate Tribunal has passed an order disposing of such appeal at any time before signing of the agreement; or

(b) the application of rollback provision has the effect of reducing the total income or increasing the loss, as the case may be, of the applicant as declared in the return of income of the said year.

(4) Where the rollback provision specifies the manner in which arm's length price shall be determined in any rollback year, then such manner shall be the same as the manner which has been agreed to be provided for determination of arm's length price of the same international transaction to be undertaken in any tax year to which the agreement applies, not being a rollback year.

(5) The applicant may, if he desires to enter into an agreement with rollback provision, furnish along with the application, the request for the same in Form No. 51 with proof of payment of an additional fee of ? 500000.