SUPERB MIND HOLDING LTD. ,NEW DELHI vs. ACIT CIRCLE INT TAX 3(1)(2), NEW DELHI

ITA 1568/DEL/2022Status: DisposedITAT Delhi05 March 2024AY 2018-19Bench: SHRI G.S. PANNU, HON’BLE (Vice President), SHRI CHALLA NAGENDRA PRASAD (Judicial Member)46 pages
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What did the Tribunal hold?

The Tribunal held that since the investments were made prior to April 1, 2017, the capital gains are grandfathered and not taxable in India, following the ratio of a Bombay High Court decision. The assessee's claim for exemption under Article 13(4) of the India-Mauritius DTAA was upheld.

What were the facts?

The assessee, a Mauritius resident, claimed exemption on long-term capital gains from selling shares of an Indian company, citing the India-Mauritius DTAA. The Assessing Officer and DRP denied this exemption, treating the assessee as a shell/conduit entity and arguing the gains were taxable in India.

What were the issues?

Whether long-term capital gains on shares sold by a Mauritius resident, whose investments were made prior to April 1, 2017, are taxable in India under the India-Mauritius DTAA.

Which sections of the Income-tax Act were involved?

Section 112,Section 143(3),Section 144C(13),Section 195

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Income Tax Appellate Tribunal, DELHI BENCH “D” NEW DELHI

Before: SHRI G.S. PANNU, HON’BLE & SHRI CHALLA NAGENDRA PRASAD

For Appellant: Shri Salil Aggarwal, Sr. Adv. &, Shri Shailesh Gupta, Adv
For Respondent: Shri Kanv Bali, Sr. DR
Hearing: 05.01.2024

PER C.N. PRASAD, J.M.

This appeal is filed by the assessee against the assessment order dated 17.05.2022 u/s 143(3) r.w.s. 144C(13) for the AY 2018-19 pursuant to the directions of the DRP order dated 25.04.2022 passed u/s 144C(5) of the Act. The assessee in its appeal raised the following grounds: -

I.T.A.No.1568/Del/2022

1.

“That the Ld.AO/DRP has grossly erred both on facts and in law while making an addition of a sum of Rs.74,15,54,375/- on account of long term capital gain to be taxed under section 112 of the Act, which is wholly unwarr

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