https://www.taxtmi.com/caselaws?id=788472 Article 24(4) of the India-Denmark DTAA required interest paid by an enterprise of one state to a resident of the other state to be deductible on the same conditions as interest paid to a resident, and section 94B was held to create residence-based differential treatment because it restricted deduction only for borrowings from a non-resident associated enterprise. Article 12(7) did not sustain the disallowance because the transfer pricing order accepted the arm's length nature of the interest and the addition arose only from the EBITDA-based thin-capitalisation rule. In the absence of a treaty carve-out for thin capitalisation, the domestic restriction could not override treaty protection, and the disallowance was deleted. en-us Mon, 09 Mar 2026 00:00:00 +0530 Mon, 23 Mar 2026 08:49:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=788472 Article 24(4) of the India-Denmark DTAA required interest paid by an enterprise of one state to a resident of the other state to be deductible on the same conditions as interest paid to a resident, and section 94B was held to create residence-based differential treatment because it restricted deduction only for borrowings from a non-resident associated enterprise. Article 12(7) did not sustain the disallowance because the transfer pricing order accepted the arm's length nature of the interest and the addition arose only from the EBITDA-based thin-capitalisation rule. In the absence of a treaty carve-out for thin capitalisation, the domestic restriction could not override treaty protection, and the disallowance was deleted. Case-Laws Income Tax Mon, 09 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=788472