Interest on income tax refund not taxable in terms of India-Netherland DTAA

Koninklijke Philips N.V C/o Deloitte Touché Tohmatsu India Pvt. Ltd. Vs DCIT (ITAT Kolkata)

ITAT Kolkata held that interest on income tax refund is a ‘debt claim’ payable by the Revenue in terms of Article 12(3)(a) of the India-Italy Treaty and thus such interest is not taxable and no TDS ought to be done by the AO.

Facts- Assessee is based out of Netherlands and does not have a permanent establishment (PE) in India. After filing the original return of income on 03.09

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