https://www.taxtmi.com/caselaws?id=58617 The India-France tax treaty prevails over the Income-tax Act only where there is a real conflict, but Article III(3) did not displace the domestic limits in section 40A(5). Article III(3) permitted deduction of expenses reasonably allocable to the permanent establishment, while section 40A(5), read with section 40A(1), restricted deductible remuneration and perquisites in computing business income. The non obstante clause in section 40A made that restriction operative notwithstanding other income-computation provisions, so the treaty and the statute were not treated as irreconcilable. The treaty objection was rejected and section 40A(5) remained applicable. en-us Mon, 31 Dec 1990 00:00:00 +0530 Mon, 20 Dec 2010 18:31:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=58617 The India-France tax treaty prevails over the Income-tax Act only where there is a real conflict, but Article III(3) did not displace the domestic limits in section 40A(5). Article III(3) permitted deduction of expenses reasonably allocable to the permanent establishment, while section 40A(5), read with section 40A(1), restricted deductible remuneration and perquisites in computing business income. The non obstante clause in section 40A made that restriction operative notwithstanding other income-computation provisions, so the treaty and the statute were not treated as irreconcilable. The treaty objection was rejected and section 40A(5) remained applicable. Case-Laws Income Tax Mon, 31 Dec 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=58617