Valid TRC Enough for DTAA Benefits; Mere Shell Company Allegation Can’t Override Treaty Protection

CPI India I Ltd. Vs ACIT (ITAT Delhi) Valid TRC suffices for DTAA benefit; vague allegations of being a shell company can’t override treaty protection- Long-term capital gains/losses on pre-2017 investments of a Mauritius resident are not taxable in India. Assessee, a Mauritius-based investment holding company with a valid Tax Residency Certificate (TRC), reported a long-term capital loss of ₹51.87 crore on sale of unlisted shares of BPTP Ltd. and claimed exemption under Article 13(4) of the India–Mauritius DTAA. AO & DRP rejected the claim, treating the company as a paper entity lac...