(2) The Competent Authority in India shall endeavour to arrive at a resolution of the case in accordance with such agreement.
(3) The resolution arrived at under mutual agreement procedure, in consultation with the competent authority of the country outside India, shall be communicated, wherever necessary, to the Chief Commissioner or the Director-General of Income-tax, as the case may be, in writing.
(4) The effect to the resolution arrived at under mutual agreement procedure shall be given by the Assessing Officer within ninety days of receipt of the same by the Chief Commissioner or the Director-General of Income-tax, if the assessee,—
(i) gives his acceptance to the resolution taken under mutual agreement procedure; and(5) The amount of tax, interest or penalty already determined shall be adjusted after incorporating the decision taken under mutual agreement procedure in the manner provided under the Income-tax Act, 1961 (43 of 1961), or the rules made thereunder to the extent that they are not contrary to the resolution arrived at.
(ii) withdraws his appeal, if any, pending on the issue which was the subject matter for adjudication under mutual agreement procedure.
Explanation.—For the purposes of rules 44G and 44H, "Competent Authority of India" shall mean an officer authorised by the Central Government for the purposes of discharging the functions as such.
Extra Notes for Readers:
- Rule 44H was introduced by the Income Tax (2nd Amendment) Rules, 2003, w.e.f. 6th Feb. 2003
Reference/Source: Check at Income Tax site for latest version of the Rules - link