The Income Tax Appellate Tribunal (ITAT) in its decision on 20 July 2012 in the case of Abu Dhabi Commercial Bank Limited v. ADIT (IT) (23 taxmann.com 359) held that the amendment to article 7(3) of the India - United Arab Emirates Income and Capital Tax Treaty (1992) (the Tax Treaty) cannot be given retrospective effect unilaterally so as to create a new obligation. (a) Facts. Abu Dhabi Commercial Bank Limited (the Taxpayer) is a banking company incorporated in UAE with two branches in India. The income from banking operations in India was reported for tax in India. The Taxpayer had claimed deduction for...