https://www.taxtmi.com/caselaws?id=249132 Interest paid by an Indian branch of a foreign bank to its head office and overseas branches was treated as a payment to self under domestic law, so the amount was not chargeable to tax in India in the hands of the foreign enterprise. On that basis, no obligation to deduct tax at source under section 195 arose, and disallowance under section 40(a)(i) could not be made. The analysis also followed the Special Bench view that, for a banking enterprise, such interest is allowable in computing profits attributable to the permanent establishment under the treaty while remaining non-taxable as a self-payment under domestic law. en-us Tue, 24 Jun 2014 00:00:00 +0530 Fri, 04 Jul 2014 20:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=249132 Interest paid by an Indian branch of a foreign bank to its head office and overseas branches was treated as a payment to self under domestic law, so the amount was not chargeable to tax in India in the hands of the foreign enterprise. On that basis, no obligation to deduct tax at source under section 195 arose, and disallowance under section 40(a)(i) could not be made. The analysis also followed the Special Bench view that, for a banking enterprise, such interest is allowable in computing profits attributable to the permanent establishment under the treaty while remaining non-taxable as a self-payment under domestic law. Case-Laws Income Tax Tue, 24 Jun 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=249132