The Income Tax Appellate Tribunal (ITAT), Mumbai bench, while granting relief to a non-resident Indian (NRI) settled in UAE, has held that the assessee is eligible for the benefit under the Double Taxation Avoidance Agreement (DTAA) between India and UAE.
While holding so, a bench of Shri Pramod Kumar, Vice President & Shri Sandeep Singh Karhail, Judicial Member has deleted an addition on account of investment made in India considering the Tax Domicile Certificate submitted by the assessee.
The assessee, Mr, Rajeev Suresh Gehi is an Indian National, fiscally domiciled in and tax resident of UAE for over three decades and therefore he is eligible for benefit of India UAE Double Taxation Avoidance Agreement. As per information received from the DDIT (Investigation), Mumbai it was noticed that the assessee has paid cash amounting to Rs. 3,65,00,000/- as loan during the year under consideration to M/s Ahuja Group. Addition was made accordingly.
Theassesseecontended that only – payment made by him was towards properties purchases and/or advances against such purchases. Further, the assessee denied, to have made undisclosed investment in India.
Granting relief to the assessee, the Tribunal noted that “As noted above in the present case, the assessee has also filed the Tax Domicile Certificate for the relevant Financial Year issued by the concerned authority in Ministry of Finance, UAE, in support of its claim. The learned D.R. could not show us in any reason to deviate from the aforesaid decision and no change in facts and law was alleged in the relevant assessment year. Thus, respectfully following aforesaid judicial precedent in assessee’s own case, we find no infirmity in the impugned order passed by the learned CIT(A). As a result, grounds raised by the Revenue are dismissed.”
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