MCDONALD'S CORPORATION,NEW DELHI vs. DCIT, CIRCLE- 2(2)(1), INTL. TAXATION, NEW DELHI

ITA 5609/DEL/2017Status: DisposedITAT Delhi13 February 2026AY 2013-14Bench: SHRI MAHAVIR SINGH (Vice President), SHRI BRAJESH KUMAR SINGH (Accountant Member)1 pages
AI SummaryWithdrawn

What did the Tribunal hold?

The Competent Authorities agreed on a 15% withholding tax for the alleged Permanent Establishment and a 2% royalty rate for AY 2012-13, subject to a 15% withholding tax under the treaty. The assessee's returned position was accepted, and the Assessing Officer's additions were dropped.

What were the facts?

The assessee, McDonald's Corporation, filed three appeals for Assessment Years 2012-13, 2013-14, and 2014-15. The appeals were related to additions made by the Assessing Officer. The assessee had filed a MAP application under the India-United States tax treaty, and the Competent Authorities of both countries reached a resolution.

What were the issues?

The appeals were filed against assessment orders following DRP directions. The primary issue was the withdrawal of appeals due to a Mutual Agreement Procedure (MAP) resolution under the India-US tax treaty.

Which sections of the Income-tax Act were involved?

Section 295(2)(h) of the Income-tax Act, 1961, Rule 44G (8) of the Income-tax Rules, 1962

AI-generated summary — verify with the full judgment below

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, D: NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No.- 211/Del/2017 [Assessment Year: 2012-13] McDonald’s Corporation, Assistant commissioner of Income c/o McDonald’s India Private 202-206, Tolstoy House, International Taxation, 15, Tolstoy Marg, New Delhi. New Delhi-110001 PAN- AAECM0624M Assessee Revenue ITA No.- 5609/Del/2017 [Assessment Year: 2013-14] McDonald’s Corporation, Deputy commissioner of Income c/o McDonald’s India Private 202-206, Tolstoy House, International Taxation, 15, Tolstoy Marg, New Delhi. New Delhi-110001 PAN- AAECM0624M Assessee Revenue ITA No.- 3847/Del/2018 [Assessment Year: 2014-15] McDonald’s Corporation, Deputy commissioner of Income c/o Dua Associates, Tax, 202-206, Tolstoy House, Vs Circle 2(2)(1), 15, Tolstoy Marg, International Taxation, New Delhi-110001 New Delhi.

ITA No.- 211/Del/2017 & two other appeals McDonald’s Corpora"on PAN- AAECM0624M Assessee Revenue

Assessee by Ms. Shruti Khimta, Adv. Revenue by Shri Om Prakash, Sr. DR Date of Hearing 13.02.2026 Date of Pronouncemen

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