YASKAWA INDIA PRIVATE LIMITED,BANGALORE vs. ASSESSMENT UNIT, INCOME-TAX DEPARTMENT AND DEPUTY COMMISSIONER OF IT, CIRCLE 7(1)(1), BANGALORE, BANGALORE

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ITTPA 1804/BANG/2024Status: DisposedITAT Bangalore20 January 2026AY 2020-219 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the assessee had filed an application for withdrawal of grounds of appeal related to the transfer pricing adjustment, citing a resolution reached under the Mutual Agreement Procedure (MAP) as per Article 25 of the India-Japan Double Taxation Avoidance Agreement. The resolution was arrived at between the competent authorities of India and Japan on December 17, 2025. The assessee, by letter dated January 13, 2026, submitted that it proposed to accept this MAP resolution and requested to withdraw the grounds of appeal pertaining to the issue resolved under MAP. The Tribunal also noted that Rule 44G of the Income Tax Rules, 1962, stipulates that orders giving effect to MAP resolutions shall be passed by the AO once all appeals are withdrawn by the assessee on the issue so resolved. The learned CIT-DR had no objection to the withdrawal of the appeal. Accordingly, the Tribunal, as requested by the assessee, dismissed the appeal as withdrawn.

What were the facts?

The assessee, Yaskawa India Private Limited, filed an appeal before the Income Tax Appellate Tribunal (ITAT) challenging an order passed by the Assessing Officer (AO) under section 143(3) read with sections 144C(13) and 144B of the Income Tax Act, 1961, for the assessment year 2020-21. The appeal concerned a transfer pricing adjustment made by the AO concerning transactions with associated enterprises in Japan. The assessee subsequently filed an application requesting the withdrawal of grounds of appeal related to this transfer pricing adjustment, citing a resolution reached under the Mutual Agreement Procedure (MAP) as per Article 25 of the India-Japan Double Taxation Avoidance Agreement. A resolution was arrived at between the competent authorities of India and Japan on December 17, 2025. The assessee proposed to accept this resolution and requested to withdraw the relevant grounds of appeal.

What were the issues?

1. Whether the assessee is permitted to withdraw its grounds of appeal pertaining to transfer pricing adjustments, given that a resolution has been reached under the Mutual Agreement Procedure (MAP) as per Article 25 of the India-Japan Double Taxation Avoidance Agreement, and in accordance with Rule 44G of the Income Tax Rules, 1962. Assessee's Contention: The assessee contended that it had filed an application under Article 25 of the India-Japan Tax Treaty for the transfer pricing adjustment and that a resolution was arrived at between the competent authorities on December 17, 2025. The assessee proposed to accept this resolution and requested to withdraw the grounds of appeal related to this issue, as per Rule 44G(8) of the Income Tax Rules, 1962, and Rule 44G of the Rules which mandates withdrawal of appeals for giving effect to MAP resolutions. Revenue's Contention: The learned CIT-DR stated that they had no objection if the appeal of the assessee was permitted to be withdrawn.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13),Section 144B,Section 253

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A’’ BENCH: BANGALORE

Before: SHRI PRASHANT MAHARISHI & SHRI KESHAV DUBEY

For Respondent: Dr. Divya K.J., D.R
Hearing: 19.01.2026Pronounced: 20.01.2026

PER KESHAV DUBEY, JUDICIAL MEMBER:

This appeal at the instance of the assessee is directed against the order of ld. AO, Assessment Unit, Income Tax Department vide DIN No. ITBA/AST/S/143(3)/2024-25/1066952791(1) dated 23.7.2024 passed u/s 143(3) r.w.s. 144C(13) r.w.s. 144B of the Income Tax Act, 1961 (in short “The Act”) for the assessment year 2020-21.

2.

The assessee has raised following grounds of appeal:

IT(TP)A No.1804/Bang/2024 Yaskawa India Private Limited, Bangalore Page 2 of 9

IT(TP)A No.1804/Bang/2024 Yaskawa India Private Limited, Bangalore Page 3 of 9

IT(TP)A No.1804/Bang/2024 Yaskawa India Private Limited, Bangalore Page 4 of 9

3.

None appeared on behalf of the assessee. We noticed that the assessee has filed an application on 15/01/2026 requesting for withdrawal of grounds of appeal filed u/s 253 of the Act in relation to the transfer pricing adjustment in accordance with rule 44G(8) of the Income Tax Rules, 1962 which are reproduced below for ease of reference and convenience:

IT(TP)A No.1804/Bang/2024 Yaskawa India Private Limited, Bangalore Page 5 of 9

IT(TP)A No.1804/Bang/2024 Yaskawa India Private Limited, Bangalore Page 6 of 9

IT(TP)A No.1804/Bang/2024 Yaskawa India Private Limited, Bangalore Page 7 of 9

4.

On going through the above application for withdrawal of grounds of appeal, we take note of the fact that the assessee had filed an application under the provisions of Article 25 (Mutual Agreement Procedure or “MAP”) of the India-Japan Double Taxation Avoidance Agreement (India-Japan Tax Treaty) in respect of the transfer pricing adjustment made by the AO towards the transaction undertaken by the assessee with its Associated Enterprises in Japan. We also take note of the fact that the resolution has been arrived at between the competent authority of India and Japan on 17.12.2025 which are reproduced below for ease of reference and record:

IT(TP)A No.1804/Bang/2024 Yaskawa India Private Limited, Bangalore Page 8 of 9

4.1 The assessee vide letter dated 13.1.2026, submitted that it proposes to accept the said resolution so arrived at under the provisions of Article 25 of the India-Japan Tax Treaty for the transfer pricing issue pertaining to the transaction undertaken by the assessee with its Associated Enterprises in Japan as resolved under the MAP.

IT(TP)A No.1804/Bang/2024 Yaskawa India Private Limited, Bangalore Page 9 of 9 4.2 As per Rule 44G of the Rules, orders giving effect to the MAP resolution shall be passed by the AO once all the appeals are withdrawn by the assessee on the issue so resolved under MAP. Accordingly, in line with the condition precedent, the assessee by way of letter dated 13.1.2026 requested to withdraw the ground of appeal pertaining to the issue for which resolution has been arrived at under the MAP between the India and Japan competent authorities.

4.3 The ld. CIT-DR has no objection if the appeal of the assessee is permitted to be withdrawn.

4.4 This being so, as requested by the assessee vide letter dated 13/01/2026, the appeal of the assessee is dismissed as withdrawn.

5.

In the result, the appeal filed by the assessee is dismissed.

Order pronounced in the open court on 20th Jan, 2026

Sd/- Sd/- (Prashant Maharishi) (Keshav Dubey) Vice President Judicial Member

Bangalore, Dated 20th Jan, 2026. VG/SPS

Copy to:

1.

The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order

Asst. Registrar, ITAT, Bangalore.

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