Federal Express Corporation v. Dy.CIT (IT) (2020) 186 DTR 209/ 203 TTJ 984 (Mum.)(Trib.)

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Apportionment of income-MAP proceedings– Appropriate to adopt 7.5 % as adjusted commercial linehaul charges (CLC) / total linehaul charges (TLC) ratio for computing taxable income-DTAA-India-USA. [Art. 8]

Tribunal held that since the AO has adopted the adjusted commercial linehaul charges to total linehaul charges  ratio of 7.5% in respect of user of  third party aircrafts for transportation  of shipments by the assessee, a US company as a result of MAP proceedings  in earlier years, it is appropriate to adopt the same ratio for computing for relevant assessment  years taxable income. (AY. 2014-15)