Appellant: Reverse Age Health Services Pte Ltd, Singapore
Respondent: DCIT, Circle-3(1)(1), International Taxation, New Delhi
Assessment Year: 2018-19
Case Filed on: 2022-08-17
Order Type: Final Tribunal Order
Date of Order: 2023-02-17
Pronounced on: 2023-02-17
This case revolves around the taxability of short-term capital gains earned by Reverse Age Health Services Pte Ltd (the appellant) on the sale of shares of Dr. Fresh Healthcare Private Limited (DFHPL). The appellant claimed the gains were exempt under the India-Singapore Double Taxation Avoidance Agreement (DTAA), but the Assessing Officer (AO) and the Dispute Resolution Panel (DRP) disagreed, citing the appellant as a ‘shell’ or ‘conduit’ company.
The appellant’s counsel, Sh. Deepak Chopra, argued that:
The respondent’s representative, Sh. Sanjay Kumar, argued that:
The Tribunal, comprising Sh. N. K. Billaiya (Accountant Member) and Sh. Anubhav Sharma (Judicial Member), conducted a thorough review of the case records and documentary evidence. They referred to the following:
The Tribunal ruled in favor of the appellant, highlighting that:
This case underscores the importance of DTAA provisions and the weightage of TRCs in international tax matters. The ruling reaffirms the obligations of tax authorities to honor bilateral agreements and provides clarity on the applicability of treaty benefits, particularly in cases involving allegations of ‘shell’ or ‘conduit’ entities.
The detailed judgment provides valuable insights for companies engaged in cross-border transactions and emphasizes the necessity for tax authorities to adhere to established international tax norms and treaties.
Case Number: ITA 1867/DEL/2022
Appellant: Reverse Age Health Services Pte Ltd, Singapore
Respondent: DCIT, Circle-3(1)(1), International Taxation, New Delhi
Assessment Year: 2018-19
Case Filed on: 2022-08-17
Order Type: Final Tribunal Order
Date of Order: 2023-02-17
Pronounced on: 2023-02-17
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