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2010 (10) TMI 304 - AT - Income TaxDTAA - The assessee is a resident of United Arab Emirates and fiscal domicile is in the UAE - In terms of Article 13(3) of this Indo UAE tax treaty, as it stood at the relevant point of time, capital gains on alienation of shares are 'taxable only in the Contracting State of which alienator is resident -While on the amendments brought about the protocol amending the Indo UAE tax treaty, it is also important to take note of the fact that old Article 13(3) in the original Indo UAE tax treaty stands substituted by new Article 13(3), 13(4) and 13(5) which considerably narrow down taxability of capital gains on alienation of shares in the domicile country. Except in a situation in which the shares are of a company holding, directly or indirectly, principally immoveable property in the other Contracting State, capital gains on alienation of shares are to be taxed in the Contracting State of which the company is resident. – This provision, however, comes into effect from 1st April 2008 and will not, therefore, have any application on the facts of the present case. - Decided in favor of assessee.
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