Revisionary jurisdiction under section 263 upheld; faceless assessments subject to revision when AO fails requisite enquiries, remitted for fresh asse...
Limited scope of processing under section 143(1): enhancement without show cause is unsustainable; remand for residency, taxation and TDS verification...
Derivatives are a distinct asset class from equity shares, and gains from trading in index-based derivatives cannot be treated as gains from alienation of shares. The Tribunal relied on the statutory distinction between shares and derivatives, including the separate treatment in the securities law framework and section 43(5), to hold that Article 13(3A) of the India-Mauritius DTAA applies only to share alienation. As the transactions fell outside that provision, the residual Article 13(4) applied and the short-term capital gains were taxable only in the State of residence. The addition made by taxing the gains under Article 13(3A) was deleted.
Derivatives are a distinct asset class from equity shares, and gains from trading in index-based derivatives cannot be treated as gains from alienation of shares. The Tribunal relied on the statutory distinction between shares and derivatives, including the separate treatment in the securities law framework and section 43(5), to hold that Article 13(3A) of the India-Mauritius DTAA applies only to share alienation. As the transactions fell outside that provision, the residual Article 13(4) applied and the short-term capital gains were taxable only in the State of residence. The addition made by taxing the gains under Article 13(3A) was deleted.
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