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TMI Blog2018 (2) TMI 1428X X X X Extracts X X X X X X X X Extracts X X X X ..... s, Mauritius, a tax resident of Mauritius has filed application for obtaining advance ruling under section 245 Q(1) of the Income Tax Act. The Applicant is the owner of shares of Star India Private Limited (SIPL) and Scorpio Television India Private Limited (Scorpio) both companies registered under Indian Laws. As part of the intra-group restructuring, the Applicant proposes to sell its entire sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion and prevention of fiscal evasion with respect to taxes on income and on capital (hereinafter referred to as India-Mauritius Double Tax Avoidance Agreement the "India-Mauritius DTAA")? 2. If the answer to Question No.1 is m the affirmative, the Transferee shall not have any liability to deduct tax at source under section 195 ofthe Income tax Act, 1961(IT Act") 2. The Department has raised o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the shares of the SIPL and Scorpio. The valuation of this transaction will be carried out by an independent professional valuer and which in any case is not the issue emanating from the questions before the Authority. It is contended that the Department has mis-construed the legal question of 'chargeability of tax5 with 'quantification of chargeable income'. Reference has been made to the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SH (Mauritius) Ltd. [2017] 84 Taxmann.com 37 (Bom). 4. Department's objection in respect of the third proviso to section 245 R(2) rests on the argument that the ultimate beneficiary of shares of the Indian company is a group based in USA and prima facie the transaction appears designed for avoidance of various tax. Reference is also made to GAAR provision and it is contended that the transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and cannot be considered as a bar. The Departmental Officer sought some more time to make submission in regard to clause (iii) of the proviso to section 245 R(2) and that being declined by this Authority, he requested that the issue may be kept open for consideration during the proceedings under section 245 R(4). 4. In the conspectus of facts & the above discussions, the Application is admitted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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