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TMI Blog2023 (5) TMI 1180X X X X Extracts X X X X X X X X Extracts X X X X ..... "1. The impugned order dated 24.03.2022 u/s 263 of the Income Tax Act, 1961 ('the Act') passed by the Ld. Commissioner of Income Tax (International Tax) - 3, Delhi ('the Ld. CIT') is bad in law and Void ab Initio, being without any jurisdiction. 2. In the facts and circumstances of the case and in law, the Ld. CIT grossly erred in holding that the assessment order u/s 143(3) dated 02.12.2019 passed by the assessing officer is erroneous in so far as it is prejudicial to the interest of revenue. 3. In the facts and circumstances of the case and in law, the Ld. CIT grossly erred in holding that the appellant is not entitled to the benefit of India-Mauritius Double Taxation Avoidance Agreement (India- Mauritius DTAA). 4. In the facts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 143(3) of the Act. 5. While carrying out review of scrutiny assessment in the case of the assessee, the Ld. CIT noticed that during the year the assessee, a tax resident of Mauritius has disposed of shares of SKS Microfinance Ltd., an Indian company for a sum of Rs. 233,74,58,232/-. It computed long term capital gains of Rs. 149,37,42,732/- after considering the cost of acquisition at Rs. 84,37,15,500/-. The assessee contended that the capital gains are not chargeable to tax in India under Article 13(4) of India-Mauritius Double Taxation Avoidance Agreement ("India-Mauritius DTAA"). It also submitted a Tax Residency Certificate ("TRC") to support its claim. The Ld. CIT was of the view that the Ld. AO did not carry out factual inquiry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee were not acceptable to the Ld. CIT. In the light of the provisions of section 263 and judicial precedent cited by him, the Ld. CIT was of the opinion that the proceedings initiated by him under section 263 of the Act is in accordance with law. He discussed the basic facts in para 7, legal position of taxation of non-resident in India in para 8, issue of tax treaty entitlement, e.g. whether the assessee is a resident for tax purposes in para 9, whether assessee is a legitimate resident in para 10 of his order. He summarised the following facts which emerged from his discussion in the preceding paras: "10.10 Summary In a nutshell, following facts emerges: 1 The scheme of arrangement employed by the assessee is a tax avoidanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and pointed out that it has been passed without carrying out any enquiry/verification in relation to the issues for which the case of the assessee was selected for complete scrutiny through CASS. Therefore, the Ld. CIT was justified in exercising power vested in him to invoke the provisions of section 263 of the Act and direct the Ld. AO to revise the assessment order in the light of his observations and findings. 11. We have given careful thought to the submissions of the Ld. CIT-DR and perused the records. It is revealed from para 3 of the impugned assessment order that during the course of assessment proceedings, the Ld. AO communicated the reasons for selection of case and sought the explanation of the assessee. However, there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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