Dismissing the appeal, that the Explanation to section 9(1)(v) of the Income-tax Act, 1961 introduced a statutory fiction that a permanent establishment of a banking enterprise in India would be deemed to be a person separate and independent of the non-resident person of which it was a permanent establishment but the Explanation would have no application since it came into effect only from April 1, 2016. The assessee’s challenge was based on the well settled position of the law clearly not contemplating a person profiting out of itself. Once it was the conclusion that the branch office would not partake of the character or attribute of a separate legal personality, the view as taken by the Tribunal was unexceptional. The interest received by the Indian permanent establishment on deposit maintained with the head office or overseas branches was not taxable in India. (AY. 2003-04)