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Norwest’s Mauritian unit entitled to treaty benefits for Capital Gains: ITAT

Business Line  

Capital Gains on transfer of shares acquired prior to April 1, 2017, are not taxable under Double Taxation Avoidance Agreement (DTAA) between India and Mauritius due to ‘grandfathering provisions’, the Delhi Bench of Income Tax Appellate Tribunal (ITAT) has clarified. The matter is related to Mauritius-based Norwest Venture Partners X for the Assessment Year 2020-21. It had claimed exemption under Article 13(4) of India Mauritius DTAA for its long-term capital gain of over INR 300 crore - which was challenged by IT department