This case note explains the ruling issued by the Authority for Advance Rulings to GEA Refrigeration Technologies GmbH, which determined that a capital gain arising from the transfer of shares in a German company, approximately 5.4% of the value of which was attributable to its shareholding in an Indian company, was not taxable in India under either section 9(1)(i) of the Income Tax Act 1961 or article 13 of the India-Germany Income and Capital Tax Treaty (1995).