9911796707
TMI BlogMutual Agreement procedure for DTAT.X X X X Extracts X X X X X X X X Extracts X X X X ..... appellate authority after an order is served on him and the litigation may proceed as per the provisions of the Income Tax Act. However, the Treaty also provides that the taxpayer may approach the Competent Authority of the Contracting State of which he is a resident where he feels that the order is not in accordance with the terms of the Treaty. Thus, the mutual Agreement Procedure is a special procedure which originates from Section90 of the It Act read with the relevant provisions of the applicable Treaty. 3. It is also important to note that the mutual agreement procedure, unlike the other appellate procedure contained in the Income Tax Act, can be initiated by a tax payer without waiting for the final order of the Assessing Officer. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rspective in mind while applying the provisions of the Treaty and circumstances under which the MAP is invoked and finally the manner in which the agreement, if any, arrived at by the Competent Authorities under the treaty provisions needs to be implemented. In this regard, the following aspects need to be borne in mind: a. Under the provisions of the Income Tax Act, the treaty provisions override the domestic law if these are more beneficial to the assessee. b. Article on Mutual Agreement Procedure in our respective treaties does give an option to the tax-payer of India as also of other countries to approach the respective Competent Authorities if he is aggrieved by the action of the tax authorities which, according to him are not in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Treaty applicable to such cases. ii. Where the assessment proceedings are pending:- This will be one of the simplest cases for giving effect to the decisions. The Assessing Officer will give effect to the decision arrived at under MAP while completing the assessment irrespective of the fact that a different view has been taken in the preceding years. However, the tax-payer shall be required to give an acceptance of the decisions under MAP and he will not have any right to appeal under any of the provisions of the I.T Act against the issues so decided once he accepts it. Therefore, an undertaking to this effect, has to be obtained from the assessee under signature of a person authorised to sign the return before giving effect to the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay, however adjudicate upon other issues of consequential nature, if any, arising out of the MAP decision e.g. item or quantum of income or expenses attributable or distributable to the PE to the extent they have not been decided under MAP. iv. Where the appeal has been decided by the CIT(A) but the appeal is pending with the ITAT:- In such cases, the assessment order u/s 143(3) would have been revised u/s 250 as per the directions of the CIT(A). The MAP decision may give certain relief to the assessee. Such relief is to be read as if provided under the Act and accordingly the order u/s 250 will have to be revised by the A.O. as per the provisions of sub section90 (2) read with relevant Article of the DTAC relating to MAP after incorpor ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
