https://www.taxtmi.com/caselaws?id=307210 Gains on transfer of debt securities by the FII division were treated as capital gains exempt under Article 13(6) of the India-Switzerland DTAA, because the FII activity and the Mumbai branch operations were functionally separate and the branch did not actively participate in the transactions. Interest on the debt securities was taxable under Article 11, since it was not effectively connected with the Indian permanent establishment and arose in the FII capacity. For branch income computation, ESOP cost was allowed as a direct expense, while other head office expenses remained subject to the section 44C restriction as sustained in computation. en-us Mon, 27 Jun 2016 00:00:00 +0530 Tue, 28 Mar 2023 08:01:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=307210 Gains on transfer of debt securities by the FII division were treated as capital gains exempt under Article 13(6) of the India-Switzerland DTAA, because the FII activity and the Mumbai branch operations were functionally separate and the branch did not actively participate in the transactions. Interest on the debt securities was taxable under Article 11, since it was not effectively connected with the Indian permanent establishment and arose in the FII capacity. For branch income computation, ESOP cost was allowed as a direct expense, while other head office expenses remained subject to the section 44C restriction as sustained in computation. Case-Laws Income Tax Mon, 27 Jun 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=307210