Held that the Departmental authorities had failed to bring on record any cogent material to substantiate their allegations that the assessee was merely a paper company, and could not be treated as a genuine tax resident of Mauritius. There was nothing on record to suggest that the Departmental authorities disputed that the assessee had made investment in the shares which gave rise to the capital gains prior to April 1, 2017. That being the established factual position, the assessee is entitled to the benefit provided under article 13(4) of the tax treaty. The amount in dispute is not taxable in India.(AY. 2016-17)
CPI India Ltd. v. Asst. CIT (IT) (2024)109 ITR 340 (Delhi)(Trib)
S.45: Capital gains-Non-Resident —Capital gains on sale of shares in Indian Company-Entitled to claim exemption – DTAA – India-Mauritius.[S. 112(1)(c) (iii), 147,R.115A, Art.13(4)]
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