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2024 (3) TMI 310 - AT - Income TaxIncome deemed to accrue or arise in India - Scope of holding Tax Residency Certificate of Mauritius (TRC) - admissibility of Benefit of Article 13(4) of DTAA between India and Mauritius treaty - addition on account of LTCG to be taxed u/s 112 - Grandfathering of capital gains on sale of investment made before 1 April 2017 - whether the long term capital gain on sale of shares is liable to tax in India? - HELD THAT:- The assessee undoubtedly made investments in Indian company namely M/s Pearl Retail Solutions Pvt. Ltd. in AY 2011-12 and 2012-13. During the impugned assessment year i.e. 2018-19 assessee company being a resident of Mauritius and holding a valid TRC has sold its part shareholding to LEI Singapore Holdings Pte Ltd. and reported long term capital gain and this long term capital gain claimed as exempt in view of Article 13(4) of DTAA between India & Mauritius. Therefore, applying the ratio of the decision BID SERVICES DIVISION (MAURITIUS) LIMITED [2023 (3) TMI 563 - BOMBAY HIGH COURT] since the investments were made by the assessee a Mauritius company holding a valid TRC prior to 01.04.2017 the resultant capital gain is not liable to be taxed in India. Respectfully following the decision (supra) we allow the grounds of appeal of the assessee.
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