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Additional evidence in transfer pricing dispute leads to fresh examination, while tax deductions, TDS credit, fee and refund interest require verifica...
Category II AIF pass-through taxation preserves non-business income character; investment receipts cannot be reclassified without applying recognised ...
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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