Delhi ITAT Upholds TRC Validity For DTAA Benefits

Facts of the Case

• SC Lowy P.I. (LUX) S.A.R.L. is a company incorporated in Luxembourg on March 6, 2015, as a Limited Liability Company (LLC).
• It is registered as a Category II Foreign Portfolio Investor with SEBI and primarily invests in bonds and pass-through certificates issued by Indian companies and securitization trusts.
• For the Assessment Year (AY) 2021-22, the company declared an income of ₹10.63 crores in its tax return, filed on January 31, 2022.
• The company claimed benefits under the India-Luxembourg Double Taxation Avoidance Agreement (DTAA), asserting:

• Business income was exempt from tax in India under Article 7 due to the absence of a permanent establishment in India.