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Whether, on the facts and in the circumstances of the case, gains arising to the applicants (a private company incorporated in Mauritius) from the sale of shares held by the applicants in Flipkart Private Ltd. (a private company incorporated in Singapore) to Fit Holdings S.A.R.L. (a company incorporated in Luxembourg) would be chargeable to tax in India under the IT Act, 1961 r/w the DTAA between India and Mauritius ?

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Sec. 245R of Income Tax Act, 1961— Advance ruling - The Applicant sought Advance Ruling under s. 245Q(1) of the Act on the question : Whether, the gains arising to the applicants (a private company incorporated in Mauritius) from the sale of shares held by the applicants in Flipkart Private Ltd. (a private company incorporated in Singapore) to Fit Holdings S.A.R.L. (a company incorporated in Luxembourg) would be chargeable to tax in India under the IT Act, 1961 r/w the DTAA between India and Mauritius?. The Authority held that “the entire arrangement made by the applicants was with an intention to claim benefit under India–Mauritius DTAA, which was not intended by the lawmakers, and such an arrangement was nothing but an arrangement for avoidance of tax in India. Therefore, the bar under cl. (iii) to proviso to s. 245R(2) of the Act is found to be squarely applicable to the present cases. Accordingly, the applications are rejected”. - TIGER GLOBAL INTERNATIONAL II HOLDINGS V/s - - [2020] 315 CTR 160 (AAR)