2009 (12) TMI 811

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....nd Dipeep Poolakkut, Adv., JUDGEMENT:- PER : A.K. Sikri All these appeals raise common question of law. The assessees in all these appeals are foreign nationals who came to India for specific purpose where they served as employees of the foreign companies. They are in fact employees of those foreign employers who were deputed to India during the relevant period. For the income in the natu....

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....ter payment of taxes, would be the same which the assessee was received in the US. The assessee was paying certain amount of tax in US on the salary earned by him there. The employer, after deducting that tax, calculated the net amount receivable by the assessee. Thereafter, it considered as to how much tax would be payable by the assessee on the income earned by him while his stay in India. Since....

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....hich we have given above, it is clear that insofar as the assessee is concerned, he had received only Rs.90/- (that is Rs.75/- + Rs.15/-; Rs.10/- was not received at all in view of the nature of arrangement between the employer and the employee). Therefore, there was no question of addition of this hypothetical tax to the income of the assessee and asking the assessee to pay tax thereupon. There i....

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....comes to pay Rs.1500/- then as per Tax equalization Policy, company would compensate the assessee for his tax liability in India not Rs.1500/- but Rs.1000/- (Rs.1500-500/-)_. It is this amount of Rs.500/- which is subtracted as hypothetical tax in order to determine the total emoluments of the assessee. Total emoluments of the assessee are his actual salaries plus tax burden of Rs.1000/- reimburse....