Consider a case \u2013 Assessee was a US resident which had invested in Indian company through a Mauritia\u2019s based company (SPV). The SPV sold shares of Indian company and claimed treaty benefit. In assessment, treaty benefit was denied on the grounds that SPV is not the beneficial owner and income is to be taxed in the hands of principal investor ie US resident.
\nA) If the Mauritius company settles under the scheme, whether the US resident investor will get protection under the scheme ie will the proceedings in case of US investor be dropped? Will the the treatment be on similar lines as protective assessessment \u2013 Refer Q35 of the FAQ dt 4 March 2020?<\/p>\n","protected":false},"excerpt":{"rendered":"
Consider a case \u2013 Assessee was a US resident which had invested in Indian company through a Mauritia\u2019s based company (SPV). The SPV sold shares of Indian company and claimed treaty benefit. In assessment, treaty benefit was denied on the grounds that SPV is not the beneficial owner and income is to be taxed in the hands of principal investor ie US resident. A) If the Mauritius company settles under the scheme, whether the US resident investor will get protection under the scheme ie will the proceedings in case of US investor be dropped? Will the the treatment be on similar lines as protective assessessment \u2013 Refer Q35 of the FAQ dt 4 March 2020?<\/p>\n