TaxTMI 
TaxTMI 
2024 (2) TMI 1454
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.... August 2023 and proposes the following questions of law for our consideration:- a) Whether the ITAT has erred in law and in fact by holding that the treaty benefits of India- Mauritius Double Taxation Avoidance Agreement ['DTAA'] are available to the assessee ignoring that scheme of arrangement employed by assessee is a tax avoidance through treaty shopping mechanism? b) Whether the ITAT has erred in law by holding that treaty the benefits of India-Mauritius DTAA are available to assessee especially when it is clear from the arrangement that assessee Company is just a conduit and not a beneficial owner of income? 2. We note that the ITAT has on a due consideration of the transactions in question returned the following findings:- "16....
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....cessary verification as per the laid out procedure and approved the sale. Thus, as could be seen from the aforesaid facts, not only the acquisition of shares by the assessee, but even sale of shares was approved after thorough inquiry by various regulatory authorities in India. 18. Thus, it has to be assumed that while granting approval the regulatory authorities have gone into the share holding and financial structure of the assessee and its parent companies and all other relevant factors. Thus, when the assessee holds a valid TRC all and Category 1 GBL and, moreover, the entire process relating to acquisition of shares of NSE and its sale went through a process of scrutiny and approval by various Government Authorities and Agency, doubt....
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....llegations without backed by substantive evidence, hence, do not deserve consideration. Unfortunately, learned DRP has merely endorsed the view expressed by the Assessing Officer without properly analyzing the facts and evidences brought on record. 21. In our view, the facts and materials available on record clearly establish that not only the assessee is a resident of Mauritius, but being a beneficial owner of the income derived from sale of shares, is entitled to the treaty benefits. Undisputedly, the shares sold by the assessee in the year under consideration were acquired in the year 2009, much prior to 01.04.2017. Therefore, the provisions of Article 13(3A) of the tax treaty would not be applicable. That being the case, the capital g....