TMI Blog2004 (10) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... Present for the Department Mr. Sunil Agarwal Addl. DIT (International Taxation) Mumbai Present for the Applicant - RULING (By Mr. Justice Syed Shah Mohammed Quadri) - The applicant is a non-resident firm. In this application, under section 245Q(1) of the Income Tax Act, 1961 (for short the "Act"), the applicant seeks advance ruling on the following questions:- • India has double Taxation Avoidance Agreement with U.A.E. As per Article 13(3) of the Double Taxation Avoidance Agreement between India and U.A.E., signed in 1993 gains from alienation of shares in an Indian company held by resident of U.A.E. will be taxable only in U.A.E. So as our client is a resident of U.A.E. for which necessary Tax residency certific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a non-resident partnership, is not disputed nor is the fact that Government of the United Arab Emirates and the Government of the Republic of India entered into a Treaty for the Avoidance of Double Taxation and Prevention of Fiscal Evasion, effective from 22 nd September, 1993 in issue. What is sought to be contended here is that the applicant is not taxable in UAE and if by virtue of para 3 of article 13 of the Treaty it is not taxed in India, it will lead to a situation of double non-taxation. It is, therefore, pleaded that the applicant be taxed in India under the Act. 3. The applicant is not present either in person or through any representative. Indeed the applicant was informed by the secretariat of this Authority that he has a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able property, it is not relevant here. Para 2 of article 13 is concerned with alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in other Contracting State, it is also not relevant for the present discussion. Para 3 deals with gains which arise from alienation of any property other than mentioned in paragraphs 1 and 2. The gains which arise from alienation of such property are made taxable only in the Contracting State of which the alienator is a resident. 6. From the facts narrated above, it is clear that under the Treaty the capital gains arising from alienation of the shares in Indian companies to the applicant who is a resident of UAE are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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