2016 (4) TMI 1323

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....facts and law in taxing entire salary income of non-resident assessee in India, including foreign allowances received outside India. 2. That the AO/CIT(A) have grossly erred in facts and law in disallowing the exemption claimed under Section 5(2) of the Act amounting to Rs. 32,25,165 by incorrectly stating that foreign allowances were received in India. 3. That the order of the AO/CIT(A) is perverse, since the issue of taxability of foreign allowances is decided on an incorrect assumption that such allowances are received in India, ignoring the details/evidences submitted by the assessee to substantiate that such foreign allowances are actually received outside India. 4. That the order of the CIT(A) is based on co....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... The facts of the case are that the Assessing Officer, on perusal of the statement of total income noticed that the assessee has claimed exemption u/s.5(2) of the Act in respect of a sum of Rs. 32,25,164/- out of total salary of Rs. 38,14,991/- received from IBM India Pvt. Ltd. during the financial year 2010-11. It was seen that the assessee's employer, IBM India Pvt. Ltd. has deducted TDS of Rs. 10,14,355/- on the entire salary of Rs. 38,14,991/-, but the assessee claimed refund of Rs. 9,86,466/-. It was submitted before the lower authorities that the assessee, an IBM employee was sent on international assignment by IBM and TDS of Rs. 10,14,355/- has been deducted on his entire salary of income. The assessee has stated that as he is a non....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ore us. 7. The ld. AR, submitted that the assessee was sent on a foreign assignment and received salary as well as allowances. The salary was to be taxed in India. However, the allowances cannot be taxed in India, as it is received outside India and the employer deducted TDS wrongly. The same was corrected by the assessee while filing the return of income and the foreign allowances received by the assessee cannot be taxed in India. As the assessee is a non-resident in India in the relevant assessment year, the provisions of sec.6(1) are attracted. Therefore, the ld. AR, submitted that the foreign allowances received by the assessee outside India for the services rendered are not taxable in India, in view of sec.5(2) of the Act. He relied....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the financial year 2010-11 and issued Form 16 to the assessee covering the entire payment received by the assessee for the services rendered outside India and the services are utilised in Indian Company for generation of income in India. According to the ld. DR, the above facts clearly establish that the salary as well as the allowances are taxable u/s.5(2) of the Act. He relied on the orders of the lower authorities. 9. We have heard both the parties and perused the material on record. The facts of the case are that the assessee has remained as an employee of IBM India Pvt. Ltd. The salary was administrated under home located salary plan as per which the salary would be paid in home location country to assessee's home location bank and....