TaxTMI 
TaxTMI 
2017 (10) TMI 1239
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....sues involved in all the appeals are identical, so, we are adjudicating them together. The details of dates of filing of ROI, returned incomes, assessment dates, assessed incomes etc can be summarised as under: AY. ROI filed on Returned Income Assessment dt. Assessed Income CIT(A) order 2007-08 26/10/2010 Rs.1.07crores 25/01/2011 Rs.146.22crores 17/01/2012 2008-09 24/09/2008 Rs.16.43 lakhs 09/02/2012 Rs.444.11 crores 23/05/2012 ITA/2824/Mum/2012-AY.2007-08: 2. First ground of appeal is about treating the'ncome on account of gain on foreign exchange transaction under the head income from capital gains as per Article 14(6) of the India Spain tax treaty. During the assessment proceedi....
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....as permitted to enter into a foreign exchange derivative contract with a person resident India to hedge an exposure to risk in respect of such transaction. He referred to the case of Citicorp Banking Corpn, (IT Appeal/6525 (Mum.) of 2009, dated 25/02/2011) and observed that the issue raised by the assessee was covered by the above order of the tribunal, that investment income of the assessee was not taxable in India as per Article 14 (6) of the tax treaty, that the gain on forex transaction entered in to hedge the investment in securities was capital gains and not taxable in India. 4. During the course of hearing before us, the Departmental Representative (DR) supported the order of the AO. The assessee relied upon the order of the FAA. ....
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....der of the tribunal we decide the first ground of appeal against the AO. 5. Next ground of appeal is about treating gain on sale of shares of companies, engaged in the real estate development, as eligible to benefit of exemption under Article 14 (6) of the India Spain treaty. During the assessment proceedings, the AO found that income had arisen from sale of shares of the companies dealing in real estate in India and deriving their value from the immovable property. He directed the assessee to explain as to why the capital gains arising from the sale of shares of such companies should not be covered under Article 14 (5) of the DTAA and charged to tax in India. After considering the submission of the assessee, he held that the language of....
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....ch companies would not get any right in the immovable properties held by those companies, that it was not correct to hold that the value of shares of those companies was derived from the value of immovable property held by them, that the value of shares of such companies was derived from market forces and demand and supply rules, that the AO was not justified in invoking the Article of 14(5)of the India-Spain Treaty and denying the benefit of exemption available to the assessee under Article 14(6) of the treaty. Finally, he allowed the appeal of the assessee. 7. Before us, the DR stated that the assessee was deriving income from immovable properties. The AR supported the order of the FAA. We find that the assessee had invested in certain....