Case Law Details
ITO Vs Rajeev Suresh Gehi (ITAT Mumbai)
ITAT Mumbai held that addition of investment made in India by tax resident of UAE is unsustainable as in terms of Indo UAE tax treaty, the right to tax the income doesn’t belong to India.
Facts-
Assessee is an Indian National, fiscally domiciled in and tax resident of UAE for over three decades and therefore he is eligible for benefit of India UAE Double Taxation Avoidance Agreement. As per information received from the DDIT (Investigation), Mumbai it was noticed that the assessee has paid cash amounting to Rs. 3,65,00,000/- as loan during the year under consideration to M/s Ahuja Group. Assessee submitted that only – payment made by him was towards properties purchases and/or advances against such purchases. Further, the assessee denied, to have made undisclosed investment in India. AO did not agree with the submissions of the assessee and treated the amount of Rs. 3,65,00,000/- as unexplained investment of the assessee made from the undisclosed sources and added the same to the total income of the assessee u/s 69 of the Act.
In appellate proceedings before learned CIT(A), the assessee filed copy of Tax Domicile Certificate issued by the Ministry of the Finance, UAE. Accordingly, CIT(A) allowed the appeal filed by the assessee.
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