Tribunal held that provisions of Act cannot override provisions of agreement .Gains derived from alienation of any property taxable only in contracting state of which alienator is resident. On facts the assessee, transferor of shares, a resident of Belgium accordingly the gains from transfer of shares taxable in Belgium and not in India therefore addition of short-term capital gain is held to be not justified ( AY.2015-16)
Sofina S. A. v. ACIT (IT) (2020)79 ITR 489/185 ITD 650 (Mum) (Trib)
S. 9(1)(i): Income deemed to accrue or arise in India – Business connection – Transfer of shares – Gains derived from alienation of any property taxable only in contracting state of which alienator is resident- Provisions of Act cannot override provisions of agreement – Gains from transfer of shares taxable in Belgium and not in India- DTAA – India – Belgium [ Art . 13(5) 13(6 ) ]