Section 173 — Definitions of certain terms relevant to determination of arm’s length price, etc

For the purposes of this section and sections 161, 162, 163, 165, 171 and 172,
unless the context otherwise requires,—
( a) “arm’s length price” means a price which is applied or proposed to be
applied in a transaction between persons other than associated enter -
prises, in uncontrolled conditions;
( b) “enterprise” means a person (including a permanent establishment of
such person) who is, or has been, or is proposed to be, engaged in any
activity relating to—
( i) the production, storage, supply, distribution, acquisition or control
of articles or goods; or
( ii) know-how, patents, copyrights, trade-marks, licences, franchises
or any other business or commercial rights of similar nature; or
( iii) any data, documentation, drawing or specification relating to any
patent, invention, model, design, secret formula or process of which
the other enterprise is the owner or in respect of which the other
enterprise has exclusive rights; or
( iv) provision of services of any kind; or
( v) carrying out any work in pursuance of a contract; or
( vi) investment or providing loan; or
( vii) business of acquiring, holding, underwriting or dealing with shares,
debentures or other securities of any other body corporate,
whether such activity or business is carried on, directly or through one
or more of its units or divisions or subsidiaries, or whether such unit or
division or subsidiary is located at the same place where the enterprise
is located or at a different place or places;
( c) “permanent establishment”, referred to in clause ( b), includes a fixed
place of business through which the business of the enterprise is wholly
or partly carried on;
( d) “specified date” means the date one month before the due date for fur -
nishing the return of income under section 263(1) for the relevant tax
year;
( e) “transaction” includes an arrangement, understanding or action in
concert,—
( i) whether or not such arrangement, understanding or action is formal
or in writing; or
( ii) whether or not such arrangement, understanding or action is in -
tended to be enforceable by legal proceeding.