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2019 (5) TMI 1331 - HC - Income TaxTP Adjustment - royalty payment - withdrawal of appeal - principle of aggregation of closely linked transactions using Transactional Net Margin Method - HELD THAT:- Petitioner has placed before this Court copy of a letter dated 2nd May 2019 received by the Petitioner from the office of the Deputy Commissioner of Income Tax Section 13(2) in regard to the settlement reached between the Assessee and the department under the Mutual Agreement Procedure (‘MAP’) between the Competent Authority (CA) of India and CA of UK under Article 27 of the India – UK Double Taxation Avoidance Agreement (‘DTAA’). This specifically deals with the issue of royalty failed by the Assessee during the AY in question. Assessee having agreed to abide by the settlement reached is required to withdraw the present appeal as far as the Question No.1 framed by the Court is concerned. The above fact has not been disputed. Mr. Ruchir Bhatia, learned Senior Standing Counsel for the Revenue, has no objection to the Court permitting the Appellant to withdraw his appeal as far as Question No.1 is concerned. Whether the Income Tax Appellate Tribunal erred in law in adjudicating upon Issues not arising from the order under challenge in relation to Section 37? - HELD THAT:- Since the remand to the TPO, in terms thereof no longer survives on account of the settlement reached under MAP between the Assessee and its department, the Court is not called upon to answer the second question since it no longer survives.
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