Interest paid by Indian Branch to Head office is not taxable in India in terms of India-France DTAA

BNP Paribas Vs ACIT (ITAT Mumbai) ITAT Mumbai held that that the interest paid by the Indian branch/PE to the head office/GE is not taxable in India in terms of India-France DTAA. Facts- The assessee is a commercial bank having its head office in France. AO noticed that the Indian branch office had paid an amount of Rs. 16,91,71,226/- to its head office/overseas branches as interest on the subordinated debt. Further, the assessee had paid an amount of Rs. 55,38,692/- as interest on Nostro overdrafts. The Indian branch office has claimed a deduction of such an amount citing the provisions of Ar...