Resident indian deriving tax free income from dubai

Dear All,

The query is:

A person is a resident (and ordinarily resident) in India. He is having Salary income in India on which he is paying taxes. He sets up an entity in a tax-free zone in Dubai (UAE). He is the sole owner in that entity (kind of sole propreitorship firm). He continues to be resident in India while managing business from here. Whether profits derived from that entity in tax-free zone in Dubai will be taxed in India???? (considering there are no taxes on that entity's profit in Dubai) If yes, please mention the relevant sections/ law/ clause of DTAA etc.