Allowing the petition the Court held that the respondents cannot defer implementing or giving effect to the mutual agreement procedure settlement. The assessee under the provisions of amended rule 44G(5), would be entitled to seek precedence to the mutual agreement procedure settlement. This was also so because of article 27(2) of the Double Taxation Avoidance Agreement. The assessee despite the mutual agreement procedure settlement and the benefit pursuant thereto, had not been given the benefit and therefore, the respondents are directed to take necessary measures within a reasonable time. (AY.2010-11 to 2013-14)
Harman Connected Services Corporation India P. Ltd. v. Jt. Secretary (Foreign Tax and Tax Research-I) (2022) 445 ITR 346 / 215 DTR 177/ 327 CTR 241 (Karn.)(HC)
S. 90 : Double taxation relief-Mutual agreement procedure-DTAA has precedence over provisions of Act where beneficial to assessee-Respondents are directed to take necessary measures within a reasonable time-DTAA-India-USA. [S. 90(2), IT Rule, 44F, 44G 44H, Art. 27(2)]