Taxability of the income from the sale of shares in the hands of resident in Mauritius

Recently, the Delhi bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of DDIT v. M/s Saraswati Holding Corpn. Inc. (2009-TIOL-529-ITAT-DEL)  ruled on the taxability of the income from the sale of shares in the hands of resident in Mauritius. The Tribunal held that the taxpayer holding tax residence certificate of Mauritius, was entitled to the exemption provided under Article 13(4) of the India-Mauritius tax treaty (the tax treaty). The Tribunal relied on the decision of the Supreme Court in the case of UOI v. Azadi Bachao Andolan [2003] 236 ITR 706 (SC). Facts of the case...