https://www.taxtmi.com/caselaws?id=242375 Interest disallowance for exempt dividend income requires proof that borrowed funds were actually used for the tax-free investment; where own funds are sufficient and no nexus is shown, the disallowance fails. Guarantee commission under continuing guarantee agreements depends on the contract terms, so the receipt may need to be spread over the guarantee period if the agreements so provide; the matter was sent back for factual verification. Treaty-based claims for the domestic company rate under the Indo-France DTAA were rejected in light of the retrospective amendment to section 90. Interest paid to head office and overseas branches was treated as a payment to self and held not taxable in India under the treaty. en-us Mon, 01 Jul 2013 00:00:00 +0530 Tue, 14 Jan 2014 08:13:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=242375 Interest disallowance for exempt dividend income requires proof that borrowed funds were actually used for the tax-free investment; where own funds are sufficient and no nexus is shown, the disallowance fails. Guarantee commission under continuing guarantee agreements depends on the contract terms, so the receipt may need to be spread over the guarantee period if the agreements so provide; the matter was sent back for factual verification. Treaty-based claims for the domestic company rate under the Indo-France DTAA were rejected in light of the retrospective amendment to section 90. Interest paid to head office and overseas branches was treated as a payment to self and held not taxable in India under the treaty. Case-Laws Income Tax Mon, 01 Jul 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=242375