Tribunal held that fiction of hypothetical independence as determined under article 7(2) was for limited purpose of profits attributable to PE and could not be used for computation of profits of assessee and, thus, interest paid by PE of assessee-bank to head office could not be brought to tax in hands of assessee-bank, even though it was allowed as deduction in computation of profits attributable to PE. (AY. 2012-13 to 2015-16 )
Shinhan Bank v. DCIT(IT) (2023) 198 ITD 453 (Mum) (Trib.)
S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Interest paid-Head office-Cannot be brought to tax even though it is allowed as deduction in computing profits attributable to PE-DTAA-India-Korea [Art. 7, 11]