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2012 (4) TMI 206 - AT - Income TaxIndia-US DTAA - Tax on interest on refund of income tax - AO applied 40% rate of tax - Held that:- the use of the expression "attributable to" in the Indo-USA DTAA has therefore to be understood either as equal to "effectively connected" or as having a narrower meaning than the word "effectively connected" - the said technical explanation is in the context of attribution of profits of the PE and is relevant to taxation of an Indian enterprise having PE in USA - the case of the Assessee would stand squarely covered in favour of the Assessee by the decision of the Special Bench in the case of Asstt. CIT v. Clough Engineering Ltd. 2011 -TMI - 210052 - ITAT, DELHI -- the interest income on income tax refund is to be charged to tax only under Article 11 (2) of the Indo-USA DTAA and not under Article 11(5) thereof - in favour of assessee.
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