2024 (7) TMI 1428

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..... 144C(13) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'), for assessment year 2020-21. 2. The assessee in appeal has raised multiple grounds on the single issue i.e. assailing addition of Rs. 39,95,46,592/- on account of long term capital gains on sale of shares under section 112 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). 3. Shri Salil Aggarwal appearing on behalf of the assessee submitted that the assessee is registered in Mauritius and is holding tax residency certificate of Mauritius. The assessee is engaged in the business of making investments. The assessee had made investment in Indian company namely Pearl Retail Solutions Pvt. Ltd. The assessee purchased 204199 shares in AY 2011-12 ....

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....ts under India-Mauritius DTAA and the long term capital gains were held taxable in India under the provisions of the Act. The ld. Counsel placed on record a copy of Tribunal order in assessee's case for AY 2018-19 in ITA No. 1568/Del/2022 decided on 05.03.2024, wherein identical issue was considered by the Coordinate Bench. 4. Shri Vijay B Vasanta representing the department vehemently defending assessment order submitted that identical issue is under consideration before the Hon'ble Supreme Court of India in SLP filed by the Department in the case of Blacks Stone Capital Partners (Singapore) VI FDI Three Pte. Ltd. The Hon'ble Apex Court has stayed the judgment of Hon'ble High Court and the matter is still pending for final adjudication.....

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....4) of the India-Mauritius DTAA and placing reliance on the decision rendered in the case of Bid Services Division (Mauritius) Ltd. vs. Authority of Advance Ruling (Income Tax) 453 ITR 461 (Bom) and the decision of Hon'ble Apex Court in the case of Vodafone International Holding BV vs. UOI 341 ITR 1 held that long term capital gain on sale of shares in the case of assessee is not liable to be taxed in India. For the sake of completeness the relevant extract of findings of the Tribunal after considering various decisions on this issue are as under:- "9. Ratio of the above decision squarely applies to the facts of the assessee's case. As could be seen from the above decision of Bombay High Court the assessee which was holding valid TR....

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....namely M/s Pearl Retail Solutions Pvt. Ltd. in AY 2011-12 and 2012-13. During the impugned assessment year i.e. 2018-19 assessee company being a resident of Mauritius and holding a valid TRC has sold its part shareholding to LEI Singapore Holdings Pte Ltd. and reported long term capital gain and this long term capital gain claimed as exempt in view of Article 13(4) of DTAA between India & Mauritius. Therefore, applying the ratio of the decision of the Bombay High Court since the investments were made by the assessee a Mauritius company holding a valid TRC prior to 01.04.2017 the resultant capital gain is not liable to be taxed in India. Respectfully following the decision of the Hon'ble Bombay High Court (supra) we allow the grounds of appe....