Revision alleging Indo Mauritian DTAA - Capital losses + PE existence for fund manager

Facts:

Assessee was a Mauritius based Private Equity investor. They had returned certain capital losses on unlisted and listed shares besides some listed entity dividends claiming benefits of Indo-Mauritius DTAA by producing Mauritian registration and Tax residency certificate. Assessment was done under Section 143(3). CIT chose to reopen under Section 263 questioning the assessment was done without seeking full info including alleging PE existence for assessee through the fund manager etc. On higher appeal by assessee questioning the revisions -

Held in favour of the assessee that the CIT proceeded with wrong notion that assessee was not a genuine entity and was into treaty shopping etc. Revision thus needs to be quashed.

Ed. Note: the issue of Mauritian entity, simpliciter is enough to trigger litigation let alone the board circulars and cases on this particular DTAA favouring the assessee.

Case: Saif Partners India IV Ltd. v. CIT 2023 TaxPub(DT) 1111 (Del-Trib)