आयकर अपीलीय अिधकरण िद(cid:671)ी पीठ “डी”, िद(cid:671)ी

঒ी िवकास अव(cid:830)थी, (cid:586)ाियक सद(cid:735) एवं

঒ी ঍जेश कु मार िसंह, लेखाकार सद(cid:735) के सम঴

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER&

SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER आअसं.1826/िद(cid:671)ी/2025(िन.व. 2018-19)

ITA No.1826/DEL/2025 (A.Y.2018-19)

CPI India I Ltd.

C/o Vasa Chauhan and Associates, Off. No. 41, 3^rd Floor, Hi Life Premises, P M Road, Santacruz West, Mumbai, Maharashtra 400054 PAN: AADCC-1505-G ...... अपीलाथ(cid:7278)/Appellant बनाम Vs.

Assistant Commissioner of Income-Tax, International Taxation 1(2)(1), Civic Centre, Minto Road, New Delhi 110002 .....(cid:7079)ितवादी/Respondent अपीलाथ५ (cid:554)ारा/ Appellant by: Shri Dhanesh Bafna, (Through VC) &

Ms. Kashish Gupta, Chartered Accountants ঋितवादी(cid:554)ारा Respondent by: Shri M.S Nethrapal, CIT-DR /

सुनवाई क(cid:7409) ितिथ/ Date of hearing : 05/08/2025 घोषणा क(cid:7409) ितिथ/ Date of pronouncement : 31/10/2025 आदशे /ORDER PER VIKAS AWASTHY, JM:

This appeal by the assessee is directed against assessment order dated

31.01.2025 passed u/s. 147 r.w.s 144C(13) of the Income Tax Act,1961(hereinafter referred to as ‘the Act’), for assessment year 2018-19.

2. Shri Dhanesh Bafna, appearing on behalf of the assessee submits that the assessee is a tax resident of Mauritius. The assesee is an Investment Holding Company. The assessee has obtained Global Business License from the Financial Services Commission Mauritius to carry out investment activities. During the period relevant to assessment year under appeal, the assessee has transferred share of only one Indian Company i.e. BPTP Ltd. (unlisted shares) for a consideration of Rs.129,86,14,415/-. The said transaction resulted in Long Term Capital Loss of Rs.51,87,87,443/-. The said loss was duly reported by the assessee in its return of income for AY 2018-19. The Assessing Officer (AO) in Draft Assessment Order disagreed with the applicability of first proviso to section 48 of the Act and held that the assessee is liable to tax as per the provisions of section 112(1)(c)(ii) of the Act. The AO also denied Treaty benefit on Long Term Capital Loss determined by the assessee. The ld. AR submits that the issue raised in present appeal has already been considered by the Tribunal in assessee’s own in AY 2016-17. The assessee had sold first trench of the securities in the year 2016 i.e. relevant to AY 2016-17. The AO disallowed assessee’s claim for the similar reasons, the assessee carried the issue in appeal before the Tribunal in ITA No.382/Del/2023. The Tribunal vide order dated 21.11.2023 decided the issue in favour of the assessee. The ld. AR referring to the draft Assessment Order submitted that the Tribunal order was brought to the notice of AO during assessment proceedings. The AO could not distinguished findings of the Tribunal on merits but refused to follow Tribunal order for the reason that the Department has not accepted the order of Tribunal and is in the process of filing appeal before the Hon’ble High Court.

3. The ld. AR pointed that the DRP has observed in its directions dated 10.12.2024 that the grounds of objection and the submissions of the assessee in the impugned assessment year are identical to AY 2016-17. The ld. AR of the assessee thus prayed for deleting addition and granting benefit of Article 13 of India-Mauritius DTAA.

4. The ld. AR made statement at Bar that he is not pressing ground no. 2 of appeal challenging validity of reassessment proceedings. The ld. AR further submits that if ground no. 5 of appeal is allowed, the other grounds of appeal would become academic.

5. Per contra, Shri M.S Nethrapal representing the department vehemently defended the impugned order. The ld. DR submits that the assessee is merely a paper company and has been created with sole purpose of evading tax. The ld. DR vehemently placed reliance on para 6.4.2 of DRP directions, the same is reproduced as und