In a rare move, an income tax tribunal has recalled its order asking the tax department to review its decision on beneficial ownership of a transaction under the Indo-Mauritius tax treaty. The tribunal would now itself take a decision in the matter.
The Mumbai-based Income Tax Appellate Tribunal (ITAT) has allowed an application filed against its order on the issue whether ‘beneficial ownership’ is inbuilt under the India-Mauritius double tax avoidance agreement (DTAA).
The appeal before ITAT came up because the assessee was denied the benefit of the treaty on capital gains of Rs 904.98 crore from share transfer as