Assessee is not a benami of holding Company or set up for tax Avoidance. Transfer of shares in Indian company to Singapore Company as part of business reorganisation . Assessee is entitled to benefits of the Double Taxation Avoidance Agreement Between India and Mauritius . Capital gains arising from sale of shares in Indian company to group company in Singapore is not liable to tax In India. S. 195 is applicable only if income chargeable to tax in payment .
AB Holdings, Mauritius-Ii, In Re. (2018) 402 ITR 37/ 163 DTR 225 (AAR)
S. 90: Double taxation avoidance agreement -Income – Non –resident -Capital gains, arising from sale of shares in Indian Company to group company in Singapore is not Liable to tax in India —DTAA-India –Mauritius [S. 195, Art. 13 ]