Despite cessation of PE, gains on transfer of PE asset taxable under Act and DTAA

Cartier Shipping Vs. DDIT (ITAT Mumbai)

The assessee, a Mauritian tax resident, owned a jack-up rig used for drilling of mineral oil. The rig was given on charter basis to an Indian company which in turn leased it to ONGC for operations in Indian territorial waters. On 24.4.1997, the assessee entered into an agreement with Foramer SA, France, to sell the jack-up rig. On 15.9.1997, the surveyors boarded the rig and coordinated its move from Bombay High to the hand-over location outside India. On 19.9.1997, the

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