Expression ‘liable to tax’ used in the India-UAE tax treaty does not necessarily imply that person should actually be liable to tax in UAE

ITAT Mumbai has in the case of ITO Vs. Mahavirchand Mehta [2011] 11 taxmann.com 194 (Mum) held that the expression ‘liable to tax’ as used in Article 4(l) of India- UAE tax treaty (the tax treaty) does not mean that the person should actually be liable to tax in that contracting state by virtue of an existing legal provision. It will also cover cases where the other contracting state has the right to tax such person, whether or not such a right is exercised. Facts of the case The taxpayer is an individual and a resident of UAE. During the previous year, he earned short term capital gain o...