Foreign Investor Gains Not Taxable in India Due to DTAA Residency Rule: ITAT Mumbai

DCIT Vs Merrill Lynch Capital Markets Espana SA SV. (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT), Mumbai, adjudicated appeals filed by the Revenue against orders of the Commissioner of Income Tax (Appeals) for Assessment Years 2016–17 and 2017–18 concerning the taxability of capital gains and foreign exchange gains earned by a Spanish company registered as a Foreign Institutional Investor (FII) in India. The assessee had invested in shares of Indian companies, including those engaged in real estate development, and claimed that gains or losses arising from such transactions were ...