आदेश / ORDER

PER BEENA PILLAI, JUDICIAL MEMBER:

The present appeal has been filed by the assessee against the order passed by the DCIT, INT. Tax Circle 1(1)(1), Mumbai (hereinafter referred to as “Ld. AO”) u/s 143(3) r.w.s. 143(3) of the Income-tax Act, 1961, dated 29/01/2025 for A.Y. 2022-23 on the following grounds of appeal:-

“On the facts and circumstances of the case and in law, the learned Deputy Commissioner of Income Tax, International Tax Circle 1(1)(1), Mumbai (the Ld. AO'), has erred in assessing the total income of the Appellant in the assessment order passed under section 143(3) read with section 144C (13) of the Income Tax Act, 1961 ("the Act") for the captioned Assessment Year ("AY") (impugned order) pursuant to the directions issued by Hon'ble Dispute Resolution Panel -1, Mumbai (hereinafter referred to as the

That on the facts and in circumstances of the case and in law, the Id.AO based on directions of the Hon'ble DRP has erred in:

General ground:

1. Assessing total income of the Appellant at INR 9,81,95,06,564 as against the returned income of INR 3,43,65,84,007;

Grounds on merits -Assessing Capital gains/losses on sale of Investments in contravention of provisions of Section 90(2) of the Act.

2. Ignoring the provisions of Section 90(2) of the Act, which provides that the Assessee has an option of applying the provisions of the Actor the India - Singapore Tax Treaty ("Tax Treaty") whichever is more beneficial to the Assessee;

3. Assessing capital gains arising on sale of investments during the year under consideration at IN 9,76,90,82,624 as against INR 3,38,61,60,067 by taxing capital gains income for investment acquired by the assessee prior to April 1, 2017, thus disregarding the explicit provisions of Article 13(4A) and Article 13(5) of the Tax Treaty.

4. Not appreciating the fact that each investment made by the assessee is a separate "source" ( come. for the purposes of application of the provisions of the Income-tax Act. 1961 and the Ta

5. Not appreciating the fact that the capital gains which are exempt as per Tax Treaty does not enter the computation of total income;

Initiating penalty proceedings under section 270A of the Act

6. Erred in initiating the penalty proceedings under section 270A of the Act;

The Appellant craves for leave to add, amend, vary, omit or substitute or withdraw any of the aforesaid grounds at any time before or at the time of hearing of the matter with the Income Tax Appellate Tribunal (“ITAT”).

The Appellant prays that appropriate relief be granted based on the said grounds of appeal and the facts and circumstances of the case.”

2. Brief facts of the case are as under:-

The assessee is a foreign company incorporated in Singapore. It filed its return of income for the year under consideration declaring total income of Rs. 338,61,60,067/- on account of capital gain. The case was selected for scrutiny. During the course of assessment proceedings, the assessee furnished submissions through the e-filing portal as well as by way of physical submissions. The assessee through its Authorised Representative on 14/03/2024 and 22/03/2024, advanced various contentions with reference to the provisions of the Income-tax Act and the applicable DTAA, in support of the income offered and claims made by the assessee.

2.1. Before the Ld.AO the assessee furnished computation of income along with evidences in support of long term capital gains earned during A.Y. 2022-23, the details of which are reproduced as under: