MICROSOFT GLOBAL SERVICES CENTER INDIA PRIVATE LIMITED,HYDERABAD vs. DCIT., CIRCLE 5(1), HYDERABAD

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ITA 1365/HYD/2024Status: HeardITAT Hyderabad06 October 2025AY 2021-225 pages
AI SummaryWithdrawn

What did the Tribunal hold?

The Tribunal noted that the dispute involved in the assessee's appeal had been resolved under the MAP proceedings. This resolution was communicated by the CBDT vide letter dated 11.09.2025, which indicated an agreement between the Indian and US Competent Authorities to resolve the MAP for AY 2020-21 concerning adjustments related to Software Development Services and Employee Stock Award. The communication detailed the proposed adjustment, amount relieved, and amount sustained for the relevant transactions. Considering the submissions of both parties and the fact that the dispute was resolved through MAP, the Tribunal allowed the assessee to withdraw the appeal. Consequently, the appeal was dismissed as withdrawn. The Tribunal did not expressly leave any issue undecided.

What were the facts?

The assessee, Microsoft Global Services Center India Private Limited, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Hyderabad 'A' Bench, against the Final Assessment Order dated 29.10.2024. This order was passed under Section 143(3) read with Section 144C(13) and 144B of the Income Tax Act, 1961, pursuant to directions from the Disputes Resolution Panel-1 (DRP), Bengaluru. The assessment year in question is 2021-22. During the hearing, the assessee's representative submitted that the dispute had been resolved under the Mutual Agreement Procedure (MAP) as per a communication from the CBDT dated 11.09.2025, and requested to withdraw the appeal.

What were the issues?

1. Whether the appeal can be withdrawn by the assessee on the grounds that the dispute has been resolved under the Mutual Agreement Procedure (MAP) as per the CBDT communication dated 11.09.2025, and if so, what is the consequence for the pending appeal? Assessee's Contention: The assessee argued that the dispute involved in the appeal has been resolved under the MAP, citing the CBDT communication dated 11.09.2025. Therefore, the assessee requested to be allowed to withdraw the present appeal. Revenue's Contention: The Revenue's representative, the learned CIT-DR, stated that they had no objection if the assessee's appeal was dismissed as withdrawn.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13),Section 144B,Section 144C(5),Section 44G(6),Section 44G(7),Section 44G(8)

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Income Tax Appellate Tribunal, Hyderabad ‘A‘Bench, Hyderabad

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