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TMI Blog2024 (7) TMI 1428X X X X Extracts X X X X X X X X Extracts X X X X ..... on the aforesaid transaction. HELD THAT:- We find that similar transaction of transfer of shares of Pearl Retail Solutions Pvt. Ltd. was undertaken by the assessee in AY 2018-19. The assessee claimed refund of TDS deducted on sale of shares. The matter travelled to the Tribunal, the Coordinate Bench after considering the facts of the case, provisions of Article 13(4) of the India-Mauritius DTAA and placing reliance on the decision rendered in the case of Bid Services Division (Mauritius) Ltd. vs. Authority of Advance Ruling (Income Tax) [ 2023 (3) TMI 563 - BOMBAY HIGH COURT] and the decision of Vodafone International Holding BV vs. UOI [ 2012 (1) TMI 52 - SUPREME COURT] held that long term capital gain on sale of shares in the case of asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pore Holdings Pte. Ltd. deducted tax at source on the aforesaid payments @10.92% u/s. 195 of the Act. The assessee claimed refund of TDS so deducted. 3.1 The assessee s claim of refund of TDS Rs. 4,37,05,930/- has been rejected by the department, hence, the present appeal. The ld. Counsel submitted that identical issue was considered by the Tribunal in assessee s own case in the immediate preceding year i.e. AY 2018-19. The transfer of shares during the relevant period is the continuation of transaction which started in AY 2018-19. In AY 2018-19 the assessee had sold 2,45,000 shares of the same company for a consideration of Rs. 74,15,54,375/-. In order to substantiate that the issue in appeal is identical to the one considered by the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have also considered the decisions on which respective sides have placed reliance to support their contentions. It is an undisputed fact that the assessee had made investment in Pearl Retail Solutions Pvt. Ltd., an Indian company in AY 2011-12 and 2012-13. The assessee had sold part of its shareholding in AY 2018-19 and the remaining part of share holding comprising of 69,999 shares of Pearl Retail Solutions Pvt. Ltd., were sold by the assessee for a consideration of Rs. 40,02,37,407/- to LEI Singapore Holdings Pte. Ltd. in the impugned AY. The assessee had claimed long term capital gains arising from sale of shares as exempt from tax in light of Article 13(4) of India-Mauritius DTAA. LEI Singapore Holdings Pte. Ltd. deducted tax at source ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of amendment of convention for avoidance of double taxation and the judgments of Hon ble Supreme Court in the case of Vodafone International Holdings B.V. Vs. Union of India Another (supra) and Union of India Vs. Azadi Bachao Aandolan another (supra) the Hon ble High Court held that the investments made prior to 01.04.2017 have been grandfathered and will not be subject to capital gain taxation in India. The Hon ble High Court considering the press release dated 29.08.2016 issued by the CBDT post amendment to Mauritius DTAA which was effect to from 01.04.2017 held that the press release expressly provides for grandfathering of capital gains exemption provided under the Erstwhile Mauritius DTAA. The Hon ble High Court held that the protocol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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