The Income Tax Appellate Tribunal (ITAT) issued its decision on 31 May 2013 in the case of Abacus International (P) Ltd. v. DDIT (ITA 1045/Mum/2008) that, in absence of any evidence of remittance or receiving of interest income in Singapore, beneficial provisions of article 11(2) of the India - Singapore Income Tax Treaty (1994) (as amended through 2005)(the Treaty) will not apply (tax rate of 15%). Accordingly, interest income would be taxable at a tax rate of 20% as per the Income Tax Act 1961 (section 115A). (a) Facts. The Taxpayer (i.e. Abacus International (P) Ltd.), a resident of Singapore,...