https://www.taxtmi.com/caselaws?id=758279 ITAT Delhi held that a US LLC qualifies as a resident under Article 4 of the India-USA DTAA despite being a fiscally transparent entity. The tribunal ruled that the LLC, having separate legal existence and perpetual existence distinct from its members, constitutes a "person" under the treaty. The phrase "liable to tax" was interpreted to include entities subject to tax under US law, even if income is ultimately taxed in members' hands. The tribunal rejected the AO's denial of treaty benefits and 25% tax rate, allowing the assessee's appeal and granting treaty benefits. en-us Thu, 05 Sep 2024 00:00:00 +0530 Tue, 10 Sep 2024 11:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=758279 ITAT Delhi held that a US LLC qualifies as a resident under Article 4 of the India-USA DTAA despite being a fiscally transparent entity. The tribunal ruled that the LLC, having separate legal existence and perpetual existence distinct from its members, constitutes a "person" under the treaty. The phrase "liable to tax" was interpreted to include entities subject to tax under US law, even if income is ultimately taxed in members' hands. The tribunal rejected the AO's denial of treaty benefits and 25% tax rate, allowing the assessee's appeal and granting treaty benefits. Case-Laws Income Tax Thu, 05 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=758279