Section 2B(2)

(2) A transaction entered into by an enterprise with a person other than an associated enterprise shall, for the purposes of sub -section ( 1), be 1[deemed to be an international transaction] entered into between two associated enterprises, if there exists a prior agreement in relation to the relevant transaction between such other person and the associated enterprise, or the terms of the relevant transaction are determined in substance between such other person and the associated enterprise 2[where the enterp rise or the associated enterprise or both of them are non -residents irrespective of whether such other person is a non -resident or not]. 3[Explanation .-For the removal of doubts, it is hereby clarified that -