2018 (8) TMI 720

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....tantial portion of his income earned during the previous year relevant to the assessment year 2010-11. The total sum involved is Rs. 14,79,598/-, and this was earned by the appellant as salary from two concerns, Great Offshore Limited and Bibby Ship Management (Singapore) Pte. Ltd. The appellant in his return had declared total income of Rs. 3,95,099/-. The aforesaid sum was added to his disclosed income in scrutiny assessment. Admitted position is that during that year, the assessee had the status of non-resident under Section 6 of the Income Tax Act, 1961. The assessee had received the said sum from his two employers in a Non-Resident (external) bank account, commonly referred to NRE account. 2. The appeal of the assessee against the afo....

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....61 Act. He has relied on a Bench decision of the Karnataka High Court Director of Income-tax (International Taxation) Vs. Prahlad Vijendra Rao (IT Appeal No. 833 of 2009) on this point. In this appeal, it was observed and held:- "6.Having heard the learned advocates appearing for the parties and after perusing the orders passed by the authorities and after having given our anxious consideration to the contentions raised, we are of the considered view that there is no substantial question of law involved in this appeal for being formulated and the adjudicated for the following reasons: (a) The revenue does not dispute that assessee had worked as a Chief Engineer on the board of a ship bebnging to his employer "M/s. Live Stock Transport ....

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....egards the legal position in a similar situation, clarification has been given by the Ministry of Finance on 11th April 2017 under Circular No. 13/2017. This Circular specifies:- "Subject: Clarification regarding liability to income-tax in India for a non-resident seafarer receiving remuneration in NRE (Non Resident External) account maintained with an Indian Bank. Representations have been received in the Board that income by way of salary, received by non-resident seafarers, for services rendered outside India on-board foreign ships, are being subjected to tax in India for the reason that the salary has been received by the seafarer into the NRE bank account maintained in India by the seafarer. 2. The matter has been examined in t....