Assessee, a tax resident of Mauritius, operated as an investment company for undertaking various investments. Assessee’s holding company acquired 5 per cent unlisted equity shares of NSE transferred to assessee in year 2009 and assessee received net long-term capital gain on part disposal of said shares and claimed long-term capital gain to be exempt under article 13(4). Assessing Officer held that assessee-company had no commercial substance and had been set up as a conduit company under a scheme of arrangement to get tax advantage under India-Mauritius tax treaty and ultimately held that assessee could not be treated as a tax resident of Mauritius and, hence, would not be entitled to treaty benefits. Assessee contended that a valid TRC and Category 1 GBL and, moreover, entire process relating to acquisition of shares of NSE and its sale went through a process of scrutiny and approval by various Government authorities. Tribunal held that since various allegations of Assessing Officer regarding residential status of assessee were in nature of vague allegations without backed by substantive evidence, assessee being a resident of Mauritius, and a beneficial owner of income derived from sale of shares, was entitled to treaty benefits.Since shares sold by assesssee in year under consideration were acquired in year 2009, much prior to 1-4-2017, provisions of article 13(3A) of tax treaty would not be applicable and, thus, capital gain derived by assessee from sale of shares would fall within ambit of article 13(4). (AY. 2018-19)