Assessee-Company, a tax resident of Mauritius, made investment in equity shares of two Indian companies ‘S’ and ‘V’ which were sold during assessment year 2019-20 and long-term capital gain earned was claimed as exempt income under article 13(4) of India-Mauritius DTAA. Subsequently, assessee filed revised return to offer LTCG from sale of equity share of ‘V’ under article 13(3B) of India-Mauritius DTAA. Assessing Officer  denied benefit of DTAA to assessee and brought to tax, entire long-term capital gain under provisions of domestic law. DRP affirmed the order of the Assessing Officer. On appeal the Tribunal held that  once tax resident of Mauritius is holding a valid TRC, Assessing Officer in India cannot go behind TRC to question residency of entity. Assessing Officer had committed a fundamental error in denying Treaty benefits to assessee inspite of fact that assessee was having a valid TRC. Further since assessee had acquired cumulative convertible preference shares (CCPS) of ‘V’ prior to 1-4-2017, capital gain derived from sale of such shares would not be covered under article 13(3A) or 13(3B) of Treaty but it would fall under article 13(4) of India-Mauritius DTAA, hence, would be exempt from taxation. (AY. 2019-20)