Assessee-company made interest payment to China Development Bank (CDB) without deducting tax at source under section 195 claiming benefit of article 11. AO held that since as per Financial Statement of CDB only 36.45% shares in said Bank was held by Government of China during relevant period, i.e., FY 2015-16, CDB could not claim benefit of DTAA and, hence, assessee was liable to deduct tax under section 195. CIT(A)   held that the CDBB is a financial institution wholly owned by the Government of China and is eligible for the beneficial provisions of Article 11(3) of the India-China DTAA. On appeal the Tribunal held that  in protocol to India-China DTAA, paragraph 3 was simultaneously inserted by deleting erstwhile paragraph 3 which defined term ‘any financial institution wholly owned by Government of other Contracting State’ and specific institutions listed in protocol for both India and China, were always covered as Government owned financial institution for purpose of article 11. Therefore  CDB being a financial institution wholly owned by Government of China was eligible for benefit of provisions of Article 11(3) the  assessee could not be treated as assessee in default with respect to non-deduction of tax on interest payments made to CDB.  (AY. 2016-17)