The issues raised in five applications being common the matters were heard together and common orders were passed.  The main issue involved for consideration was “Whether the Income arising to PQR and STU investment made in India out of the contributions made by ABC. DEF or GHI will be assessed in the hands of ABC, DEF or GHL, as the contributions made by it to PQR and STU will be considered as, revocable transfer under section 61 of the Act ?

After analyzing the various provisions of the Act and DTAA, the AAR held that (Questions 1 to 5) No, it will be assessed in the hands of PQR and STU and benefit of article 13 of the India-Netherlands Double Taxation Avoidance Agreement is not admissible to these funds. Other queries raised. i.e. Whether the contribution made  by participants to the fund will be considered as revocable transfer under section 61 or whether the funds are assessable under section 161 are in the nature of alternative pleas have became infructuous in view of the specific finding that the income is assessable in the hands of the  funds.(AAR. Nos. 1358 to1362 dt. 21-1-2020)