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2011 (5) TMI 35 - ITAT MUMBAIDTAA with UAE - Capital gain on sale of shares - assessse claimed that the short term capital gain cannot be brought to tax in India in view of Article 13(3) of the Indo-UAE DTAA. Since the assessee was a Resident of UAE, it is only UAE which has a right to tax capital gain and not India. - Held that: - a tax treaty not only prevents 'current' but also 'potential' double taxation - whether or not the UAE actually levies taxes on non-corporate entities, once the right to tax UAE residents in specified circumstances vests only with the Government of UAE, that right, whether exercised or not, continues to remain exclusive right of the Government of UAE - expression 'liable to tax' in the contracting state as used in Article 4(1)of Indo-UAE-DTAA does not necessarily imply that the person should actually be liable to tax in that contracting state and that it is enough if other contracting state has right to tax such person, whether or not such a right is exercised - Decided in the favour of the assessee
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