Articles 13 and 24(4A) of India-Singapore DTAA – On facts, in absence of any primary motive of tax avoidance, gains from alienation of shares acquired before 01 April 2017 were taxable only in Singapore

1.[2025] 180 taxmann.com 241 (Mumbai - Trib.)

Fullerton Financial Holdings Pte. Ltd. vs. ACIT (International Taxation)

IT APPEAL NOS. 1137 (MUM) OF 2025

A.Y.: 2022-23 Dated: 28 October 2025

Articles 13 and 24(4A) of India-Singapore DTAA – On facts, in absence of any primary motive of tax avoidance, gains from alienation of shares acquired before 01 April 2017 were taxable only in Singapore

FACTS

The Assessee, a tax resident of Singapore, was incorporated in 2003. The Assessee was an indirect subsidiary of Temasek Holdings Private Limited, an entity owned by the Singapore Government through its Minister of Finance. The Singapore tax authorities had granted a tax residency certificate ("TRC") and expressed their satisfaction with the Assessee's operating expenditure. The Assessee operated as an investment company for the group in the financial sector and had investments across Asia. The Assessee, along with its group entity, had investments in India. The Assessee sold its stake in Indian company shares, which were acquired before 1 April 2017 to a Japanese entity for ₹681.32 Crores and it claimed that the ga