https://www.taxtmi.com/caselaws?id=210052 Interest on an income-tax refund received by a non-resident with a permanent establishment in India was examined under the Indo-Australia DTAA, with Article 11(4) excluding the concessional interest article only where the debt is effectively connected with the permanent establishment. The text notes that section 90(2) requires the more beneficial treaty provision to apply, and that "effectively connected" is a wider test than a domestic income-head classification. On the facts, refund interest was found not sufficiently connected with the permanent establishment because it arose from tax deducted from business receipts, whereas bank interest had a closer link to permanent-establishment funds. Refund interest was therefore taxable under Article 11(2), not Article 7 read with Article 11(4). en-us Fri, 06 May 2011 00:00:00 +0530 Fri, 31 Jul 2026 11:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=210052 Interest on an income-tax refund received by a non-resident with a permanent establishment in India was examined under the Indo-Australia DTAA, with Article 11(4) excluding the concessional interest article only where the debt is effectively connected with the permanent establishment. The text notes that section 90(2) requires the more beneficial treaty provision to apply, and that "effectively connected" is a wider test than a domestic income-head classification. On the facts, refund interest was found not sufficiently connected with the permanent establishment because it arose from tax deducted from business receipts, whereas bank interest had a closer link to permanent-establishment funds. Refund interest was therefore taxable under Article 11(2), not Article 7 read with Article 11(4). Case-Laws Income Tax Fri, 06 May 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=210052