TaxTMI 
TaxTMI 
2011 (4) TMI 104
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....olding that the assessee being an employee of a foreign company receiving a portion of salary in India is eligible for exemption under Articles 16(1) and 16(2) of the Double Taxation Agreement between India and UK, when the salary has been paid by the Indian subsidiary company. 2. Whether on the facts and circumstances of the case, the Tribunal was right in holding that the assessee is eligible for exemption under Articles 16(1) and 16(2) of the Double Taxation Agreement between India and UK, when such income has been received from an Indian company and the salary certificate shows the disbursal of the salary and deduction of TDS in India?" 2. The facts leading to this appeal are that the respondent assessee, an employee of M/s Diego Comp....
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....overnment of India and the Government of United Kingdom. According to the assessee, he was an employee of one Diageo Plc. in U.K. and was working in their London office and that he had also worked in India for about 20 days in the subsidiary of Diageo Company known as UDV. Further, it is the case of the assessee that that portion of the salary was payable in India and the said arrangement was made for the purpose of pensionary benefits. Moreover, he claimed that the portion of a salary paid in India by a foreign employer cannot be brought to tax under Article 16(2) of DTAA. The finding of the Assessing Officer after considering the provisions of DTAA, was that the salary was not exempted as the conditions stipulated in Article 16 of DTAA we....
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....uneration is not subjected to tax in that State, if his stay does not exceed 183 days and remuneration is paid by the employer, who is not also a resident of the other State and the remuneration is not tax deductible from the profits chargeable to tax in that State. 7. Though there was some dispute initially with regard to the first condition regarding stay of 183 days, after production of additional documents by the assessee, the appellate authority as well as the Tribunal had concurrently held that the first condition has been satisfied. However, the dispute revolves round the Conditions (b) & (c). So far as the conditions (b) & (c) are concerned, the authorities, namely, the Assessing Officer and the Appellate Authority have conc....