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2016 (8) TMI 606 - AT - Income TaxDenial of benefit of provisions of DTAA between India and Singapore - capital gain arising to resident of Singapore - Held that:- The prima facie perusal of all the Articles suggest that capital gain arising to resident of Singapore may not be taxable in India. The assessee has furnished before us details of the capital gain showing that the entire amount of capital gain has been earned on account of sale of securities of mutual funds. Under these circumstances, we find it appropriate to send both the issues back to the file of the AO for their examination on merits. The AO shall give adequate opportunity of hearing to the assessee to submit requisite details and documentary evidences to demonstrate that assessee is eligible for the benefit of Article 13 of DTAA as has been claimed by him. Our observations on merits, with regard to prima facie applicability of the provisions of DTAA, were given just to enable us to dispose this appeal. But, AO is not bound by it and it should not have any bearing on the ultimate decision to be taken by the AO with regard to applicability of these provisions upon income of interest and short term capital gains. The AO shall decide this issue on merits afresh after taking into account all the facts and evidences on objective basis and after giving adequate opportunity of hearing to the assessee. The assessee shall extend requisite cooperation to the AO by submitting requisite details and documentary evidences as per law.
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