Treaty Benefits Cannot Be Denied Without Cogent Evidence: ITAT Delhi

SC Lowy P.I. (LUX) S.A.R.L Vs ACIT (ITAT Delhi) The assessee, SC Lowy P.I. (LUX) S.A.R.L, a limited liability company incorporated in Luxembourg and a subsidiary of SC Lowy Primary Investments Limited (Cayman Islands), appealed against the denial of treaty benefits by the AO during assessment under the Income Tax Act. The AO had concluded that the arrangement constituted tax avoidance via treaty shopping, alleging that the Luxembourg entity was merely a conduit, with the real owner being the Cayman-based holding company. The AO also questioned the validity of the TRC (Tax Residency Certificate...