https://www.taxtmi.com/caselaws?id=312271 Interest on income-tax refund under section 244A was treated as interest income under Article 11(2) of the India-Malaysia DTAA, not as business income under Article 7. The Tribunal applied the view that such refund interest is not effectively connected with the permanent establishment in India, whether tested on assets or activities, and therefore cannot be attributed to business profits. Relying on the jurisdictional High Court, it followed the treaty interest article as the correct charging provision. The corresponding grounds were allowed in favour of the assessee. en-us Mon, 07 Nov 2022 00:00:00 +0530 Fri, 09 Feb 2024 18:27:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=312271 Interest on income-tax refund under section 244A was treated as interest income under Article 11(2) of the India-Malaysia DTAA, not as business income under Article 7. The Tribunal applied the view that such refund interest is not effectively connected with the permanent establishment in India, whether tested on assets or activities, and therefore cannot be attributed to business profits. Relying on the jurisdictional High Court, it followed the treaty interest article as the correct charging provision. The corresponding grounds were allowed in favour of the assessee. Case-Laws Income Tax Mon, 07 Nov 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=312271