Treaty residence and place of effective management disputed, leading to remand for fresh verification before taxability is decided.

Treaty residence and place of effective management under the India-Mauritius DTAA were disputed, and the existing evidence on board meetings, control, passport material and affidavits was not adequately authenticated. The Tribunal held that third-party or governmental verification was needed before any conclusive determination on capital gains taxability could be made. The matter was restored to the Assessing Officer for fresh adjudication, and no final finding was recorded on the merits of treaty protection or non-taxability.

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Issues: Whether the assessee's claim of treaty protection and non-taxability of capital gains on sale of shares required fresh examination in light of the disputed place of effective management and supporting evidence.

Analysis: The dispute turned on the assessee's residential status under the India-Mauritius DTAA and whether its place of effective management and control was in Mauritius or India. The record contained competing claims regarding board meetings, management control, passport material, and affidavit evidence, but the authenticity and relevance of the material had not been satisfactorily verified. The Tribunal held that third-party evidence or evidence from a government agency in Mauritius or India was necessary to test the assessee's claim before a final determination could be made.

Conclusion: The matter was restored to the Assessing Officer for fresh adjudication, and the appeals succeeded only for statistical purposes.

Final Conclusion: No final finding was recorded on the taxability of the capital gains on merits, and the dispute was sent back for reconsideration after proper verification of the evidence.

Ratio Decidendi: Where the assessee's treaty residence and place of effective management are disputed, and the existing material is not adequately authenticated, the matter may be remanded for fresh factual verification before any conclusive tax determination.

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