THR INFRASTRUCTURE PTE LTD,GURGAON vs. DCIT, CIR.-3(1)(1), INTL TAX, NEW DELHI

ITA 1915/DEL/2022Status: DisposedITAT Delhi12 May 202362 pages
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What did the Tribunal hold?

The Tribunal held that the assessee is entitled to the benefits of the India-Singapore DTAA regarding capital gains on the sale of CCDs. The Tribunal found that the Tax Residency Certificate (TRC) was sufficient evidence of residency and that the revenue failed to prove tax avoidance or lack of beneficial ownership.

What were the facts?

The assessee, a Singapore-resident company, sold Compulsory Convertible Debentures (CCDs) and claimed exemption from capital gains tax under the India-Singapore Double Taxation Avoidance Agreement (DTAA). The Assessing Officer (AO) denied this benefit, alleging lack of economic substance and control/management in Singapore.

What were the issues?

Whether the assessee is eligible for capital gains tax exemption under the India-Singapore DTAA, and whether the AO erred in denying DTAA benefits despite the assessee possessing a valid TRC and demonstrating economic substance.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13),Section 270A

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Income Tax Appellate Tribunal, DELHIBENCH ‘D’, NEW DELHI

Before: Sh. Saktijit DeyDr. B. R. R. Kumar

Hearing: 14.02.2023Pronounced: 12.05.2023

Per Dr. B. R. R. Kumar, Accountant Member:

The present appeal has been filed by the assessee against the order dated 29.07.2022 passed by the AO u/s 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961. 2. Following grounds have been raised by the assessee:

“1. On the facts and circumstances of the case and in law, the final assessment order (‘Order’) passed by the Deputy Commissioner of Income Tax, International Taxation, Circle 3(1 )(1), Civic Centre, New Delhi (‘the Ld. AO’) and directions passed by the Dispute Resolution Panel-2, New Delhi (‘the Ld. Panel’) is erroneous on

The order continues below.

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