Interest on income tax refund received by non-resident companies is taxable irrespective of PE

Transocean Offshore International Ventures Ltd. Vs DCIT (ITAT Delhi) Gist of the pronouncement – Interest on income tax refund received by the non-resident companies shall be taxable as per the provision of Tax Treaty irrespective of the fact that whether the assessee has PE in India or not. Assessee’s Stand – Assessee company offered the interest on income tax refund as per the beneficial provision of Article 11 of the India USA Tax Treaty (i.e @15%) Department’s Stand – Tax authorities taxed the impugned income as per the provision of the Income Tax Act at  maximum marginal...