https://www.taxtmi.com/caselaws?id=65390 A Mauritius-incorporated company's tax residence was examined under domestic law first: under section 6(3), a foreign company becomes resident in India only if its control and management is wholly situated in India, and the treaty tie-breaker applies only after dual residence is established. On the facts, incorporation and tax residence in Mauritius, along with RBI-approved investment activity, did not justify treating the company as resident in India; capital gains on share sales were therefore covered by article 13(4) and Circular No. 789. Remittances received through banking channels for share ment from outside India were also not taxable as unexplained cash credit under section 68, which cannot expand section 5(2). en-us Fri, 20 Jul 2007 00:00:00 +0530 Wed, 07 Feb 2024 12:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=65390 A Mauritius-incorporated company's tax residence was examined under domestic law first: under section 6(3), a foreign company becomes resident in India only if its control and management is wholly situated in India, and the treaty tie-breaker applies only after dual residence is established. On the facts, incorporation and tax residence in Mauritius, along with RBI-approved investment activity, did not justify treating the company as resident in India; capital gains on share sales were therefore covered by article 13(4) and Circular No. 789. Remittances received through banking channels for share ment from outside India were also not taxable as unexplained cash credit under section 68, which cannot expand section 5(2). Case-Laws Income Tax Fri, 20 Jul 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=65390