Rectification of mistake remains limited to self-evident record errors, preventing merits review through miscellaneous applications and preserving fin...
Tender creditworthiness conditions may extend to de facto Promoter Directors, with post-participation challenges generally barred absent arbitrariness...
Corporate representation in PMLA summons proceedings permitted through an authorised signatory, subject to directors' continuing cooperation and atten...
Helicopter charter classification requires effective control analysis, while territorial performance, reasoned credit orders and wilful suppression de...
Specified fund definition expands PAN exemption eligibility for registered alternative investment funds and qualifying International Financial Service...
Tax exemption for specified legal-services authority income applies retrospectively, subject to non-commercial activity, unchanged income sources, and...
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.
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