Interest on I-T refund received by foreign company taxable as interest income

Bechtel International Inc Vs. Assistant Director of Income Tax (ITAT Mumbai) ITA No. 5198 and 6998 /Mum/2010, Date- 08.02.2012 Issue –1. Whether the interest on income-tax refund is to be considered as interest income falling within Article 11(2) of the tax treaty or as interest income attributable to permanent establishment or fixed base in India falling under Article 11(5) read with Article 7 of the tax treaty? 2.  whether the expression ‘attributable’ as used in Article 11(5) of the tax treaty has to be construed as equivalent / narrower to the term ‘effectively con...