https://www.taxtmi.com/caselaws?id=388796 Transfer pricing adjustment on notional interest on compulsorily convertible debentures was held unsustainable where the non-resident Mauritius assessee had waived interest and no actual receipt was shown. Article 11(1) of the India-Mauritius DTAA was read as taxing only interest arising in a Contracting State and paid to a resident of the other State, requiring actual payment or receipt rather than hypothetical accrual. Because section 90(1) gives overriding effect to the more beneficial treaty provision, income not chargeable under the treaty could not be brought to tax under the Act, and the transfer pricing machinery under section 92(1) could not be applied to a notional receivable. The addition was deleted. en-us Fri, 15 Nov 2019 00:00:00 +0530 Fri, 22 Nov 2019 13:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=388796 Transfer pricing adjustment on notional interest on compulsorily convertible debentures was held unsustainable where the non-resident Mauritius assessee had waived interest and no actual receipt was shown. Article 11(1) of the India-Mauritius DTAA was read as taxing only interest arising in a Contracting State and paid to a resident of the other State, requiring actual payment or receipt rather than hypothetical accrual. Because section 90(1) gives overriding effect to the more beneficial treaty provision, income not chargeable under the treaty could not be brought to tax under the Act, and the transfer pricing machinery under section 92(1) could not be applied to a notional receivable. The addition was deleted. Case-Laws Income Tax Fri, 15 Nov 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=388796