Capital gain tax on non-resident partner

Dear aradhya please mention what type of capital asset was there in India? And there was any permanent establishment in India ? Also what type of connection was there in India? Doing business in India? They filled any itr previously in India?

Sir, actually that firm is involved in money lending business, debt from the Indian customers is the asset of a firm in India. And yes, there is a permanent establishment in India [ No, they have not filed any itr before]..i want some arguements from the partner side by showing that capital gain tax cannot be levied by Indian authorities

Dear aradhya I really have no idea about such money lending business and I am not able to understand how capital gain will arise in this case from debts. But I want to give you a suggestion that first decide about the status of the assessee( which I think wld be NR) then see in which form you are going to have gain ( longterm or shortterm) then what type of asset it is. Then lastly I would recommend you to see tds provisions on the same as this case is of NR. I cannot help you more than this as I am liltle confused on how debts comes under capital gain. :|

Dear aradhya please also check the definition of capital assets with your case.