https://www.taxtmi.com/caselaws?id=435850 Under the India-Switzerland treaty, the hypothetical independence of a permanent establishment under Article 7 applies only to attribution of business profits and cannot be extended to treat the overseas branches or head office as independent recipients of interest for Indian tax purposes. The discussion notes that the amendment to section 9(1)(v) by the Finance Act, 2015 does not override the treaty position where Article 11, read with Article 7, governs the tax treatment. It also notes that a penalty challenge based only on initiation of proceedings is premature where no crystallised levy has arisen. en-us Fri, 24 Mar 2023 00:00:00 +0530 Tue, 28 Mar 2023 18:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=435850 Under the India-Switzerland treaty, the hypothetical independence of a permanent establishment under Article 7 applies only to attribution of business profits and cannot be extended to treat the overseas branches or head office as independent recipients of interest for Indian tax purposes. The discussion notes that the amendment to section 9(1)(v) by the Finance Act, 2015 does not override the treaty position where Article 11, read with Article 7, governs the tax treatment. It also notes that a penalty challenge based only on initiation of proceedings is premature where no crystallised levy has arisen. Case-Laws Income Tax Fri, 24 Mar 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=435850