Assessee-company, a tax resident of Mauritius, earned certain amount as interest income from securities. Assessee claimed said income would be exempt under clause (c) of article 11(3) of India-Mauritius DTAA.  Assessing Officer disallowed said claim of assessee.  Revenue contended that clause (c) of article 11 of DTAA would not apply to assessee as it did not have a banking business license from RBI. DRP upheld the findings of the Tribunal. Tribunal held that interest income from seecurities  would be exempt under clause (c) of article 11(3) of India-Mauritius DTAA.  On appeal the Court held that   in draft assessment order Assessing Officer had granted exemption to interest on ECB by accepting that assessee was carrying on bona fide banking business in Mauritius. Since assessee was carrying a bona fide banking business in Mauritius, interest that assessee earned would be exempt in India.(AY. 2011-12)