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2023 (6) TMI 741 - DELHI HIGH COURTIncome taxable in India - sale of shares by the petitioner of an Indian company - benefit of Tax Residency Certificate (TRC) - petitioner takes the stand, that since it has been issued a TRC under the laws of Mauritius, it is entitled to take benefit of the provisions of Article 13 of the India-Mauritius DTAA obtaining between India and Mauritius - AO ruled, that the TRC issued to the petitioner was not conclusive evidence, which would establish its residential status, consequently making the petitioner eligible for treaty benefits. HELD THAT:- AO has attributed an intent to the assessee- which is that it would indulge in tax evasion inter alia, by treaty shopping, without any material or information of such kind being put to it. We are of the view, that unless relevant information, if any, which is available with the AO, is put to the petitioner, which leads to a conclusion that the TRC obtained by the petitioner is not legally valid and/or viable, the impugned order passed by the AO cannot be sustained. Without expressing any final view in the matter, in our opinion, the best way forward would be to set aside the order, and direct the AO to confront the petitioner with material or information, which according to her, would have her arrive at a conclusion that the TRC on which the petitioner seeks to place reliance deserves to be rejected. AO, who has called for the relevant information, will furnish the same to the petitioner, as soon as the same is made available.
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