Assessee was a Cyprus-based company. It acquired equity shares of an Indian company (NSEIL) from its holding company, GA Global (also Cyprus based).  Assessee sold shares of NSEIL to unrelated independent third-party buyers and claimed benefit under Article 13 of the India-Cyprus DTAA. Assessing Officer after examining the ownership structure of assessee, the list of Directors of company and beneficiary of transactions of sale of shares, came to conclusion that the ultimate beneficiary of the transaction of sale of shares on NSEIL was General Atlantic Company based in USA and concluded that assessee was merely a shell company established in Cyprus with an intention of circumventing Indian tax laws using India-Cyprus DTAA as a tool.  The Assessing Officer denied the benefit of DTAA to assessee. On appeal, the Tribunal held that the investment made by holding company ‘GA Global’ in the Indian company was scrutinised by Indian regulatory authorities and thereafter, approved. Further, assessee had placed on record minutes of Board meetings held during the relevant financial year, and it was evident that assessee company was managed in Cyprus and not in the USA and decisions of investment/disinvestment for assessee were carried out in Cyprus. Only one Director from the USA was present in the Board meeting, wherein the issue regarding transfers of shares of NSEIL was discussed. Tribunal held that once assessee held a valid TRC, it proved the residential status of the assessee as a resident of Cyprus and, hence, it would be eligible to benefit under the India-Cyprus DTAA. (AY. 2021-22)