https://www.taxtmi.com/caselaws?id=442871 In proceedings under section 195(2), withholding must be confined to the portion of income chargeable to tax and cannot rest on assumptions or a wholesale attribution of the entire remittance to an Indian permanent establishment. The attribution exercise must follow the treaty framework, with proper allowance for deductions and apportionment between Indian and overseas activities, and a treaty claim cannot be rejected on an erroneous assumption that the foreign recipient is not an incorporated entity. The applicant must furnish relevant financial information, but the withholding determination cannot be made de novo on a defective basis; the order should instead be modified to reflect the limited scope of the provision. en-us Thu, 31 Aug 2023 00:00:00 +0530 Tue, 12 Sep 2023 09:25:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=442871 In proceedings under section 195(2), withholding must be confined to the portion of income chargeable to tax and cannot rest on assumptions or a wholesale attribution of the entire remittance to an Indian permanent establishment. The attribution exercise must follow the treaty framework, with proper allowance for deductions and apportionment between Indian and overseas activities, and a treaty claim cannot be rejected on an erroneous assumption that the foreign recipient is not an incorporated entity. The applicant must furnish relevant financial information, but the withholding determination cannot be made de novo on a defective basis; the order should instead be modified to reflect the limited scope of the provision. Case-Laws Income Tax Thu, 31 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=442871