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Facts
The assessee filed an appeal against the final assessment order for AY 2016-17. During the pendency of the appeal, the assessee filed a request to withdraw the appeal, stating that the disputes had been resolved under the Mutual Agreement Procedure (MAP) as per Article 27 of the India-USA Double Taxation Avoidance Agreement.
Held
The assessee had filed an application under the MAP provisions, and the Competent Authorities of India and the US had resolved the case, providing relief to the assessee. Consequently, the assessee sought to withdraw all grounds of appeal, including those related to penalty.
Key Issues
Whether the appeal can be dismissed as withdrawn due to resolution of disputes under MAP and whether penalty related grounds have become infructuous.
Sections Cited
143(3), 144C(3), 144B, 271(1)(c), 253, 44G(8)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH, I: NEW DELHI
Before: SHRI MAHAVIR SINGH & SHRI BRAJESH KUMAR SINGH
ORDER
PER BRAJESH KUMAR SINGH, AM,
This appeal has been filed by the assessee against the final assessment order dated 30.06.2021 passed under section 143(3) read with section 144C(3) r.w.s. 144B of the Income-tax Act, 1961 (hereinafter referred to as “the Act”), pursuant to the directions of the Hon'ble Dispute Resolution Panel (DRP) order dated 30.09.2020 for Assessment Year 2016-17.
ITA No.- 1028/Del/2021 McKinsey & Company India LLP 2. When the matter was called for hearing, none appeared on behalf of the assessee. However, a written request letter dated 04.02.2026 has been filed on record by the assessee seeking withdrawal of the present appeal in view of the resolution of the disputes under the Mutual Agreement Procedure (MAP) contained in Article 27 of the India–USA Double Taxation Avoidance Agreement. The relevant extract of the said written request letter are reproduced as under: 2. Ref: McKinsey & Company India LLP (McKinsey LLP or 'the Appellant) - Year ('AY') 2016-17 (relevant Financial Year ('FY') 2015-16] Sub: Withdrawal of all grounds of appeal filed under Section 253 of the Income Tax Act, 1961 ('the Act') in accordance with Rule 44G(8) of the Income Tax Rules, 1962 (the Rules)
This is with reference to the appeal filed by the Appellant before the Hon'ble Income Tax Appellate Tribunal ('Hon'ble Tribunal'), against the final assessment order dated 30 June 2021 passed by the Additional / Joint/ Deputy/ Assistant Commissioner of Income Tax/ Income-tax Officer, National Faceless Centre, New Delhi ('learned AO') for AY 2016-17. A copy of acknowledgement for appeal filed along with additional grounds of appeal is enclosed as Annexure
1. In this regard, the Appellant hereby submits that it had filed an application under the provisions of Article 27 [Mutual Agreement Procedure ('MAP')] of the India- United States ('US') Double Taxation Avoidance Agreement ('India-US tax treaty') in respect of the transfer pricing adjustments made by the learned Transfer Pricing Officer (TPO')/AO in the above-mentioned final assessment order for AY 2016-17. It is further submitted that the Competent Authorities of India and internal Revenue Service at US have resolved the case under the provisions of Article 27 of the India-US tax treaty. In this context, the Appellant has received a MAP resolution providing relief towards the adjustments covered in the application. Given the above, the Appellant wishes to inform that it intends to accept the resolution arrived at by the Competent Authority of India and US. In view of the above, the appellant seeks to withdraw all the grounds of appeal
, i.e., Ground Nos. 1 to 15 filed on 27. August 2021, as well as the additional ground No. 16 filed on 17. April 2022.
ITA No.- 1028/Del/2021 McKinsey & Company India LLP The Appellant also submits that the appeal includes corporate tax-related grounds pertaining to the consequential levy of penalty under Section 271(1)(c) of the Act. Given the MAP resolution, these grounds have now become infructuous. We further wish to bring to the kind attention of the Hon'ble Tribunal that the matter last came up for hearing on 13 January 2026, during which the Hon'ble Tribunal was informed that the MAP application for the relevant year was pending final disposal. Accordingly, the Hon'ble Tribunal adjourned the appeal sine die, observing that the MAP proceedings were likely to take considerable time.
Since the MAP proceedings are now concluded, the Appellant respectfully requests the Hon'ble Tribunal to list the appeal at the earliest convenience for the limited purpose of recording the withdrawal of the ITAT appeal. We request the Hon'ble Tribunal to take the above on record and oblige.” (emphasis supplied by us)
In the said letter, the assessee submitted that the issues involved in the present appeal, primarily relating to transfer pricing adjustments, have been resolved under the Mutual Agreement Procedure (MAP) in terms of Article 27 of the India–USA Double Taxation Avoidance Agreement between the Competent Authorities of India and the United States. It is submitted that the assessee has accepted the MAP resolution and, in accordance with Rule 44G(8) of the Income-tax Rules, 1962, seeks to withdraw Ground Nos. 1 to 15 raised in the memorandum of appeal filed on 27.08.2021 as well as additional ground No. 16 filed on 17.04.2022. It is further stated that the grounds relating to consequential levy of penalty under section 271(1)(c) of the Act have become infructuous.
ITA No.- 1028/Del/2021 McKinsey & Company India LLP 4. The Ld. Sr. DR did not have any objection to the above request of the assessee seeking withdrawal of the said appeal.
We have perused the written request placed on record. In light of the letter dated February 4, 2026 seeking for withdrawal of the appeal by the assessee, and there being no objection from the Revenue, we find no reason to decline the request for withdrawal of the appeal. Accordingly, the same is granted, and consequently, this appeal is dismissed as withdrawn.
In the result, the appeal of the assessee is dismissed as withdrawn. Order pronounced in the open court on 13th February, 2026