OHM JUNIPER LONGTERM FUND LIMITED,MAURITIUS V. DCIT INTL. TAXATION -2(2)(2), NEW DELHI

MA 31/DEL/2025

AI Insights

The case involves M/s. OHM Juniper Longterm Fund Ltd, a Mauritius-based investment fund, which sought modification of a previous tribunal order concerning the tax treatment of short term capital gains from Indian shares. The Tribunal had initially ruled on the tax implications of gains from shares acquired before and after 01.04.2017, but inadvertently omitted a specific finding regarding the concessional tax rate applicable to gains from shares acquired post-01.04.2017. The Tribunal acknowledged this oversight and corrected the order to reflect the appropriate tax treatment under the India-Mauritius Double Taxation Avoidance Agreement (DTAA).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314107 (ITAT-DELHI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 09-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2018-2019
• Laws Referred To: India-Mauritius DTAA
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Assessee Lawyers: KANCHAN KAUSHAL
• Keywords: Capital Gains; Double taxation relief

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER MA No. 31/Del/2025 (In ITA No. 2722/Del/2023) (Assessment Year: 2018-19) M/s. OHM Juniper Longterm Fund Ltd, 5th Floor, Ebene Esplanade, 24 Cybercity, Ebene, Mauritius Vs. DCIT, International Taxation- 2(22)(2), New Delhi (Appellant) (Respondent) PAN:AACCO2383D Assessee by : Shri Kanchan Kaushal, Adv Revenue by: Shri Om Prakash, Sr. DR Date of Hearing 09/05/2025 Date of pronouncement 09/05/2025 O R D E R PER M. BALAGANESH, A. M.: 1. By virtue of this miscellaneous application, the assessee seeks modification of the order passed by this Tribunal in ITA No. 2722/Del/2023 dated 22.10.2024 on the ground that no finding was given by the Tribunal with regard to gains arising to the assessee on sale of shares which was acquired post 01.04.2017. 2. We have heard the rival submissions and perused the material available on record. The assessee is a tax resident of Mauritius holding Tax Residency Certificate issued by Mauritius Tax Authorities. The assessee had made certain investments in Indian capital market. This Tribunal had already held in the order that assessee would be entitled for treaty MA No. 31/Del/2025 M/s. OHM Juniper Longterm Fund Ltd Page | 2 benefits provided in India-Mauritius DTAA. The assessee during the year under consideration had earned short term capital gains of Rs. 26,74,24,041/- as under:- “a) STCG earned by the assessee on shares acquired prior to 1.4.2017 on which the assessee claimed the benefit of Article 13(4) of the India – Mauritius Treaty as not taxable – Rs 25,22,54,936/- b) STCG earned by the assessee on shares acquired post 1.4.2017 which are taxable at the rate of 50% of applicable Indian tax rate as per Article 13(3A) read with Article 13(3B) and Article 27A of India Mauritius Treaty – Rs 1,51,74,105/-.” 3. As stated earlier, the Tribunal has already held that the assessee would be entitled for treaty benefits of India-Mauritius DTAA since it is tax resident of Mauritius and has its Central Management and Control in Mauritius. This Tribunal categorically has given a finding that short term capital gains arising in respect of shares acquired prior to 01.04.2017 in the sum of Rs. 25,22,54,936/- cannot be subjected to tax in terms of Article 13 of India-Mauritius treaty in para 19 of the order. However, the Tribunal omitted by inadvertence to give a finding with regard to short term capital gains arising on sale of shares which was acquired post 01.04.2017 for which the assessee would be entitled for concessional rate of tax as per Article 13(3A) read with Article 13(3B) and 27A of India- Mauritius treaty in the sum of Rs. 1,51,74,105/-. We have already held that assessee had duly complied with the conditions prescribed in Article 13 and 27A of the India-Mauritius Treaty. Hence, we hold that assessee would be entitled to concessional rate of tax @50% of Indian Tax rate as per Article 13(3A) read with Article 13(3B) and Article 27A of India- Mauritius Treaty for short term capital gains on shares acquired post 01.04.2017 in the sum of Rs. 1,51,74,105/-. Accordingly, the para 19 of the order stands modified in the aforementioned terms. For the sake of clarity, the modified para 19 of the Tribunal order shall read as under:- MA No. 31/Del/2025 M/s. OHM Juniper Longterm Fund Ltd Page | 3 “19. In view of the aforesaid observations and respectfully following the various judicial precedents relied upon hereinabove, we hold that assessee would be entitled to treaty benefits under Article 13 of India Mauritius DTAA and accordingly would not be liable to capital gains tax in respect of sale of shares that were acquired prior to 1.4.2017. In respect of shares acquired post 01.04.2017, the short term capital gains of Rs. 1,51,74,105/- earned by the assessee shall be taxable @50% of applicable Indian Tax rate as per Article 13(3A) read with Section 13(3B) and 27A of India-Mauritius treaty. Accordingly, ground No. 1.1 and 1.2 raised by the assessee are allowed.” 4. All other contents of the Tribunal order shall remain unchanged. 5. In the result, miscellaneous application of the assessee stands allowed in the above mentioned terms. Order pronounced in the open court on 09/05/2025. -Sd/- -Sd/- (MAHAVIR SINGH) (M. BALAGANESH) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 09/05/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "