Mauritius Fund Allowed to Carry Forward Capital Losses Despite DTAA Exemption on Gains

Matrix Partners India Investment Holdings Vs DCIT (ITAT Mumbai)

In a significant ruling, the Income Tax Appellate Tribunal (ITAT), Mumbai bench, has held that a Mauritius-based investment fund, Matrix Partners India Investment Holdings, is entitled to carry forward capital losses from the sale of shares under the Indian Income-tax Act, 1961, even while claiming exemption on capital gains from the sale of other shares under the Double Taxation Avoidance Agreement (DTAA) between India and Mauritius. The case hinged on the interpretation of the India-Mauriti

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