Capital gain on sale of equity-oriented mutual fund not taxable under India-Mauritius DTAA

Emerging India Focus Funds Vs ACIT (ITAT Delhi)

ITAT Delhi held that for the purpose of taxing an income earned from selling a security the DTAA should be strictly interpreted. Accordingly, capital gains arising on sale of equity-oriented mutual funds are not taxable under India-Mauritius DTAA.

Facts- Assessee is a foreign company and a tax resident of Mauritius. The assessee is carrying on investment activity in India by way of investments in shares and debentures of Indian companies through recognized stock exchanges in India.

AO held that out of th

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