The Central Board of Direct Taxes (CBDT), Ministry of Finance, Government of India has issued an Office Memorandum dated November 27, 2025, to streamline the implementation of outcomes reached under the Mutual Agreement Procedure (MAP) in cases where related appeals are pending before the Commissioner of Income Tax (Appeals) [CIT(A)].
The clarification comes in response to instances where taxpayers who filed MAP applications under Rule 44G of the Income Tax Rules, 1962, simultaneously had appeals pending before the CIT(A). The new guidelines aim to ensure a clear and uniform process for giving effect to MAP resolutions.
Key Highlights of the Office Memorandum:
- Recognition of practical challenges: CBDT noted that in several cases, MAP resolutions were received while the corresponding appeals remained pending with the CIT(A), creating procedural uncertainty.
- Procedure following MAP resolution: Under Rule 44G(8), upon receipt of the MAP resolution from the Competent Authority in India, the taxpayer is required to convey acceptance or rejection of the resolution in writing along with proof of withdrawal of appeal. For cases where the appeal is pending with the CIT(A), a clear withdrawal process has now been specified.
- Role of CIT(A) in the process: When an appeal is pending before the CIT(A) and the taxpayer submits a withdrawal request based on MAP grounds, the CIT(A) may formally intimate acceptance of the withdrawal to both the Competent Authority and the taxpayer.
- Effect of such intimation: The intimation issued by the CIT(A) shall be treated as proof of withdrawal of appeal for the purposes of giving effect to MAP resolutions under Rule 44G.
The clarification is expected to enhance administrative efficiency, reduce procedural delays, and promote speedy implementation of MAP outcomes, thereby strengthening dispute-resolution mechanisms under international tax treaties.
The Office Memorandum can be accessed at: https://incometaxindia.gov.in/news/office-memorandum-dated-27-10-2025.pdf
