TaxTMI 
TaxTMI 
2021 (1) TMI 210
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....an appeal before the Hon'ble Income-tax Appellate Tribunal ('ITAT') bearing ITA No. 7312/Mum/2018 dated 21 December 2018 for AY 2014-15 against the final assessment order passed by the Respondent, pursuant to the directions issued by the Hon'ble Dispute Resolution Panel. 2. The said appeal was disposed of by the Hon'ble ITAT, 'I' Bench, Mumbai vide an order dated 31 January 2020 which was served upon the Appellant on 28 February 2020. 3. The Appellant begs to present this application for rectification of a mistake which is apparent from record in the order of the Hon'ble ITAT which is discussed herein below: Background: 4. The Appellant is a company incorporated in the United States of America ('USA&#....
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....r Article 27 of the India-USA Tax Treaty. In this respect, the CAs of USA and India, agreed and laid out a formula to be generally applied in calculating the Appellant's taxable income in India attributable to usage of third party aircrafts for AYs 2007-08 and 2008-09, The formula provided by MAP authority was as follows: Taxable Income attributable to third party aircrafts = Indian Branch Revenue *Enhanced CLC to TLC ratio# * Global Profitability Rate (#Enhanced CLC to TLC ratio was near to twice of the original CLC to TLC ratio) 8. The Appellant accepted the resolution taken under the Mutual Agreement Procedure ('MAP') between the CAs of India and USA. 9. The process / methodology as laid out in MAP resolution for AY ....
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....odology provided in MAP. The finding of the Hon'ble ITAT in para 7 of the order is reproduced hereunder: "7. While the outcome of MAP Proceedings does not indeed find the parties for the years other than the years before the competent authority, it does indeed provide a reasonable basis particularly when it is dealing with an estimation parameters. The Assessing Officer has given vague reasons for deviating front the same in the present year........" (emphasis supplied) 14. However, it is most respectfully submitted that while reproducing the arguments of the Appellant at para 6, it seems that the Hon'ble ITAT has inadvertently mentioned that the ratio of CLC to TLC should not be more than 7.5% instead of 4%. Para 6 of the orde....
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....viating from the same in the present year. In our considered view, therefore, it will meet the ends of justice that 7.5% as adjusted CLC/TLC ratio is adopted for computing this year's taxable income as well. To this extent^we uphold the plea of the Assesses" (emphasis supplied) 17. It can be observed from the above para that the Hon'ble ITAT has agreed to the contention of the Appellant that methodology prescribed under MAP proceedings should be followed, however, while concluding the order, the Hon'ble ITAT has inadvertently mentioned the ratio of CLC to TLC should not be more than 7.5% instead of 4%. 18. Further, the Appellant wishes to submit that the Hon'ble DRP had already reduced the ratio of CLC to TLC from 10% t....