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2011 (9) TMI 654 - ITAT, DELHIDTAA- Capital Gains - Individual Residents of UAE - Government T-Bills - Held that:- - the decision in the case of Green Emirate Shipping and Travels (2005 -TMI - 80954 - ITAT MUMBAI) is clearly applicable to the facts of the case. As held in the aforesaid case the 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 the contracting sate but would also cover the cases where that other Contracting State has the right to tax such person whether or not such a right is exercised. The term ‘resident’ has been defined in the notification as ‘individual who is present in that UAE for a period or periods totalling in the aggregate at lease 183 days in the calendar year concerned”. In this case there is no dispute with reference to the fact that these persons are residents of UAE. Therefore, we are of the opinion that there is no liability to tax the capital gains arising to the individual constituents/investors on the transactions in Government Treasury Bills undertaken through the Bank. Since there is no liability to tax in India, obviously the Bank is not covered by the provisions of TDS.
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