https://www.taxtmi.com/caselaws?id=244142 Payments by an Indian branch to its head office for credit analysis, administration and support require a clear factual finding on whether they are mere reimbursements without profit element or consideration for identifiable services; because that foundation was incomplete, the matter on deductibility was remanded for fresh adjudication. Interest paid by the branch to the head office on subordinated debt and term borrowings was treated as deductible in computing profits attributable to the permanent establishment under the applicable treaty, and not taxable in India in the foreign enterprise's hands. The related withholding disallowance was therefore deleted, giving the assessee substantive relief on the interest issue. en-us Wed, 04 Sep 2013 00:00:00 +0530 Wed, 29 Jun 2022 11:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=244142 Payments by an Indian branch to its head office for credit analysis, administration and support require a clear factual finding on whether they are mere reimbursements without profit element or consideration for identifiable services; because that foundation was incomplete, the matter on deductibility was remanded for fresh adjudication. Interest paid by the branch to the head office on subordinated debt and term borrowings was treated as deductible in computing profits attributable to the permanent establishment under the applicable treaty, and not taxable in India in the foreign enterprise's hands. The related withholding disallowance was therefore deleted, giving the assessee substantive relief on the interest issue. Case-Laws Income Tax Wed, 04 Sep 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=244142