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Assessing Officer jurisdiction after statutory transfer invalidates reassessment notices issued by transferor officers and nullifies resulting proceed...
Consequential appeal-effect orders must implement rectification deleting working-capital adjustments and reconsider the resulting arm's-length range c...
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Section 54 construction relief survives pre-transfer commencement when completion occurs within the statutory period, excluding ineligible spouse-owne...
The ITAT held that derivatives are distinct financial instruments separate from shares, as shares are defined under Section 2(84) of the Companies Act and derivatives fall within the definition of securities under Section 2(81) and the Securities Contracts (Regulations) Act. Given that derivatives derive value from underlying assets without conferring ownership rights like voting, gains from their alienation fall under Article 13(4) of the India-Mauritius DTAA, which exempts such income from taxation in India. Consequently, the gains from transfer of derivatives are not taxable in India but in Mauritius. The addition made by the revenue on this account was deleted, and the assessee's appeal was allowed.
The ITAT held that derivatives are distinct financial instruments separate from shares, as shares are defined under Section 2(84) of the Companies Act and derivatives fall within the definition of securities under Section 2(81) and the Securities Contracts (Regulations) Act. Given that derivatives derive value from underlying assets without conferring ownership rights like voting, gains from their alienation fall under Article 13(4) of the India-Mauritius DTAA, which exempts such income from taxation in India. Consequently, the gains from transfer of derivatives are not taxable in India but in Mauritius. The addition made by the revenue on this account was deleted, and the assessee's appeal was allowed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4881 
