India: Capital gain not taxable under old India-Mauritius treaty (tribunal decision)

A tribunal decision concerning capital gain under the old India-Mauritius treaty

A tribunal decision concerning capital gain under the old India-Mauritius treaty

The Delhi Bench of the Income-tax Appellate Tribunal held that capital gain recognized by a Mauritian company on a sale of shares in an Indian company was not taxable in India under the old India-Mauritius income tax treaty.

The court found that the Mauritian company was not a conduit company. Moreover, assuming the concept of beneficial ownership were relevant, the Mauritian company was owned by a Dutch company which would have qualified for the exemption on capital gains under the India-Netherlands income tax treaty.

The case is: MIH India (Mauritius) Ltd. v. ACIT

Read a November 2022 report [PDF 432 KB] prepared by the KPMG member firm in India


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