The assessee\u00a0 is a company incorporated in, and fiscally domiciled in, the Republic of Mauritius. It was incorporated on 8th June 2006 and it holds a global business licence (GBL) issued by the Financial Services Commission, Mauritius. The assessee is also registered as a foreign venture capital investor (FVCI) with the Securities and Exchange Board of India. The assessee has also been issued a \u201etax residency certificate\u201f by the Mauritian Revenue Authority. During the relevant previous year, the assssee has sold equity shares of CMS Info Systems Ltd for a consideration\u00a0 to Sion Investment Holdings Pte Ltd.The Assessing Officer held that the said income\u00a0 earned by the assessee is in the nature of long term capital gains. The Assessing Officer held\u00a0 that the assessee is not eligible for benefit of India, Mauritius\u00a0 tax treaty. The Assessing Officer proceeded on the basis that since beneficial owner of the capital gains in question is an entity based outside Mauritius, the assessee is not entitled to the treaty protection in respect of capital gains in question.\u00a0 The Tribunal held that the Assessing Officer clearly fallen in error in proceeding\u00a0 on the basis that the concept of beneficial ownership in context of article 13 without assigning any specific and cogent reasons in support. The matter remanded to the file of the Assessing Officer to decide the issue in accordance with law. (AY. 2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 90 : Double taxation relief-Beneficial ownership-long term capital gains-Transfer of shares of CMS Info Systems Ltd–Matter remanded to the file of the Assessing Officer-DTAA-India-Mauritius [Art. 13(4)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-36373","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-9sF","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/36373","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=36373"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/36373\/revisions"}],"predecessor-version":[{"id":36374,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/36373\/revisions\/36374"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=36373"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=36373"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=36373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}