FORT CANNING CREDIT INVESTMENTS PTE. LTD.,SINGAPORE vs. ASSISTANT COMMISSIONER OF INCOME-TAX (INTERNATIONAL TAXATION) - 2(3)(1), MUMBAI, MUMBAI

ITA 2104/MUM/2025Status: DisposedITAT Mumbai27 January 2026AY 2022-231 pages
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What did the Tribunal hold?

The Tribunal held that capital gains on renouncement of rights entitlement are covered under the residuary clause of Article 13(5) of the India-Singapore DTAA and are taxable only in the country of residence (Singapore). Consequently, the additions made by the Assessing Officer were deleted.

What were the facts?

The assessees, tax residents of Singapore and FPIs in India, claimed exemption for capital gains on settlement of NCDs/Masala Bonds and renouncement of rights entitlement under the India-Singapore DTAA. The Assessing Officer re-characterized part of the gains as interest and taxed the renouncement of rights as capital gains on shares.

What were the issues?

Whether capital gains arising from renouncement of rights entitlement are taxable in India under the India-Singapore DTAA, and whether such gains fall under the residuary clause for taxation in the country of residence.

Which sections of the Income-tax Act were involved?

Section 144C,Section 143(3),Section 234B,Section 270A

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Income Tax Appellate Tribunal, “I” BENCH MUMBAI

Before: SHRI AMIT SHUKLA & SHRI GIRISH AGRAWAL

Hearing: 29.10.2025Pronounced: 27.01.2026

PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:

These appeals filed by the assessee are against the assessment order passed under the directions of Dispute Resolution Panel-1 (DRP), Mumbai

The order continues below.

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