McDonald's Corporation vs Assistant Commissioner Of Income Tax, Circle 2(2)(1), International Taxation

“ Sub: McDonald's Corporation ('Corp' or the 'Appellant') Permanent Account Number ('PAN'): AAECM0624M Assessment Years ('AY'): AY 2012-13 to AY 2014-15 Bench -D Ref: Request for withdrawal of appeals on account of application under Rule 44G of the Income-tax Rules, 1962 ('the Rules')

May it please your Honor's.

This is with reference to the captioned matter. In this regard, we wish to submit as under:

The following appeals have been filed by the Appellant assessee before the Hon'ble Income Tax Appellate Tribunal, New Delhi ('Hon'ble ITAT'):

S. No.	AY	Appeal No.	Date of filing appeal	Bench	Date of hearing
1	2012-13	211/Del/2017	January 12,2017	D	Adjoined sine die on account of ongoing MAP proceedings
2	2013-14	5609/Del/2017	September 01, 2017	D
3	2014-15	3847/Del/2018	August 22,2018	D

The copy of the acknowledgments along with the Form 36B is enclosed as Annexure 1.

In this regard, it is humbly submitted that the Appellant assessee had filed a MAP application under Article 27 of the India-United States tax treaty on account of the additions made by the Learned Assessing Officer ('Ld. AO') in relation to AY 2012-13, AY 2013-14 and AY 2014-15.

Pursuant to the aforesaid MAP application, the Competent Authorities of India and the United States have reached a resolution as under:

i)

In relation to the alleged Permanent Establishment (PE) of the Appellant in India by the Ld. AO, the Competent Authorities have agreed to the 15% withholding tax paid by the Appellant in India as per its return of income; and

ii) In relation to the adjustment on royalty income (relevant for AY 2012-13), the Competent Authorities have agreed to the 2% royalty rate as earned and offered to tax by the Appellant in its return of income, and that the same should be subject to a withholding rate of 15% under the tax treaty.

In summary, the returned position of the Appellant assessee have been duly accepted by the Competent Authorities and the positions adopted by the Ld. AO in the assessment proceedings have been dropped. A copy of the resolution that has been received by the Appellant, on February 2, 2026, from the Indian Competent Authorities is enclosed herewith as Annexure 2.

With reference to the above, the management of the Appellant assessee, after due deliberations, wishes to accept the MAP resolution as agreed between the Competent Authorities of India and the United States.

The subject appeals were last listed for hearing on December 13, 2024, when the Hon'ble Bench adjourned the matter sine die pending the outcome of the MAP proceedings. The assessee was further directed to file an application seeking relisting of the appeal upon conclusion of the MAP proceedings. A copy of the order sheet is enclosed as Annexure 3.

Accordingly, in view of the above and as required under section 295(2)(h) of the Income-tax Act, 1961 ('the Act') read with Rule 44G (8) of the Rules, the Appellant is filing this application to withdraw the aforesaid pending appeals filed before the Hon'ble ITAT to give effect to the agreement reached between the Competent Authorities. Given the relief granted to the Appellant, the issues to be decided in the pending appeals become infructuous.

Prayer:

It is our humble prayer that the aforesaid appeals may be fixed for hearing, on an out of turn basis, at an early date, so that the Appellant assessee may comply with the requirements as laid out in the aforesaid Rule 44G (8) at the earliest.

It is most humbly submitted that your Honor may allow the withdrawal of appeals with the liberty to revive them again, in the unlikely event that the MAP resolution is not given effect to, or if the dispute remains unresolved for any reason.

We trust that your Honour would accede to our above request and grant leave to withdraw the aforesaid appeal. The Appellant assessee shall ever be grateful for this act of kindness.”