https://www.taxtmi.com/caselaws?id=777081 Under the India-Germany DTAA, interest is taxable only when it is actually "paid" to a resident of the other Contracting State, meaning funds must be placed at the creditor's disposal. A notional transfer pricing adjustment for interest that was neither paid nor contractually receivable did not satisfy that treaty condition, and domestic accrual principles could not be imported through Article 3(2) to expand taxation. Section 90(2) preserved the more beneficial treaty position, while Chapter X and Section 92C could not create a charge where the treaty did not permit it. The notional interest addition was therefore deleted. en-us Thu, 31 Jul 2025 00:00:00 +0530 Sat, 23 Aug 2025 08:31:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=777081 Under the India-Germany DTAA, interest is taxable only when it is actually "paid" to a resident of the other Contracting State, meaning funds must be placed at the creditor's disposal. A notional transfer pricing adjustment for interest that was neither paid nor contractually receivable did not satisfy that treaty condition, and domestic accrual principles could not be imported through Article 3(2) to expand taxation. Section 90(2) preserved the more beneficial treaty position, while Chapter X and Section 92C could not create a charge where the treaty did not permit it. The notional interest addition was therefore deleted. Case-Laws Income Tax Thu, 31 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=777081