https://www.taxtmi.com/caselaws?id=772864 A treaty provision taxing interest at the gross amount does not displace domestic computation rules; the term "gross" excludes deduction of expenditure, but current-year business loss of an Indian permanent establishment may still be set off under the Income-tax Act, so the set-off was treated as allowable. Concessional taxation of non-resident interest at 5% was also held available where the borrowing complied with RBI-governed ECB conditions, and case-specific loan approval was not required merely because the loan was an external commercial borrowing. The commentary also notes that refund adjustment was remitted for verification and the penalty ground was considered premature. en-us Wed, 11 Jun 2025 00:00:00 +0530 Sat, 14 Jun 2025 06:47:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=772864 A treaty provision taxing interest at the gross amount does not displace domestic computation rules; the term "gross" excludes deduction of expenditure, but current-year business loss of an Indian permanent establishment may still be set off under the Income-tax Act, so the set-off was treated as allowable. Concessional taxation of non-resident interest at 5% was also held available where the borrowing complied with RBI-governed ECB conditions, and case-specific loan approval was not required merely because the loan was an external commercial borrowing. The commentary also notes that refund adjustment was remitted for verification and the penalty ground was considered premature. Case-Laws Income Tax Wed, 11 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=772864