The assessee  is a company incorporated in, and fiscally domiciled in, the Republic of Mauritius. It was incorporated on 8th June 2006 and it holds a global business licence (GBL) issued by the Financial Services Commission, Mauritius. The assessee is also registered as a foreign venture capital investor (FVCI) with the Securities and Exchange Board of India. The assessee has also been issued a „tax residency certificate‟ by the Mauritian Revenue Authority. During the relevant previous year, the assssee has sold equity shares of CMS Info Systems Ltd for a consideration  to Sion Investment Holdings Pte Ltd.The Assessing Officer held that the said income  earned by the assessee is in the nature of long term capital gains. The Assessing Officer held  that the assessee is not eligible for benefit of India, Mauritius  tax treaty. The Assessing Officer proceeded on the basis that since beneficial owner of the capital gains in question is an entity based outside Mauritius, the assessee is not entitled to the treaty protection in respect of capital gains in question.  The Tribunal held that the Assessing Officer clearly fallen in error in proceeding  on the basis that the concept of beneficial ownership in context of article 13 without assigning any specific and cogent reasons in support. The matter remanded to the file of the Assessing Officer to decide the issue in accordance with law. (AY. 2016-17)