TaxTMI 
TaxTMI 
2014 (12) TMI 1325
X X X X Extracts X X X X
X X X X Extracts X X X X
.... on account of treating foreign allowance as income liable to be taxed in India, by holding that the assessee had paid taxes on the salary and allowances received in Netherlands in the concerned period and therefore, is not liable to be taxed in India and further ignoring the findings of the A.O. 2. The appellant craves to add, amend modify or alter any grounds of appeal at the time or before the hearing of the appeal." 2. The assessee filed return of income declaring income of Rs. 3,27,910/-. The case was scrutinized U/s 143(3) by the I.T.O. (International Taxation), Ward 2(1), Banglore. The case was transferred to I.T.O. Ward 1(4), Udaipur on the basis of territorial jurisdiction and from there to the Additional D.I.T. (Intern....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... total income of any previous year of a person who was a non-resident included all income from whatever source derived, which was received or deemed to be received in India in such year by or on behalf of such persons or accrued or arises to him in India during such year. Since the salary had been received in India by the employee through a credit to his salary account, the same will be taxable in India irrespective of the residential status, in accordance with section 5 of the Act. Accordingly, he made addition of Rs. 17,27,360/- in the income of the assessee. 3. Being aggrieved by the order of the learned Assessing Officer, the assessee carried the matter before the learned CIT(A), who had allowed the appeal by observing that the appel....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ar of a person who is a resident includes all income from whatever source derived, which is received or is deemed to be received in India or which accrues to him in India or which accrues to him outside India during such year. In order words, the total income of a resident Indian shall, inter alia, include even income which accrues to him outside India. Therefore, as per Section 6 of the Act, income accrues outside the India is not taxable. Section 6 indicates the meaning of residence in India. Section 6 of the Act lays down that for the purposes of Income Tax Act, an individual is said to be a resident in India if he is in India for a prescribed period. Therefore, Section 6 emphasizes physical presence of the person in India. Section 9(1)(....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he other State. If the employment was so exercised, such remuneration as was derived there from may be taxed in that other State. During the course of appellant proceedings, the counsel of appellant submitted the details of income tax paid by the appellant in Netherlands. The appellant had paid taxes on the salary and allowances received in Netherlands in calendar year 2007 and calendar year 2008 as the previous year consisted of the period 01/01/2007 to 31/12/2007 and 01/01/2008 to 31/12/2008. These documents were forwarded to ADIT (Int. Tax) Jaipur vide my letter dated 05/12/2011. In response, the A.O. has not made any specific comments as regards the contents available in the documents. The A.O. has stated vide his letter dated 03/01/201....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ble Mumbai High Court in the case of Nirmala L. Mehta Vs. CIT (269 ITR 1) held that acquiescence could not take away from a party the relief that he was entitled to. In view of above facts, I direct the A.O. to delete the addition of Rs. 17,27,360/-. This ground of appeal is allowed. 4. Now the Revenue is in appeal before us. The learned D.R. supported the order of the Assessing Officer. 5. At the outset, the learned A.R. for the assessee reiterated the submissions made before the learned CIT(A) and submitted that the appellant is an employee of IBM India Pvt. Ltd., was sent on an International assignment to Netherlands during the previous year 2007 08. The appellant received foreign allowances of Rs. 17,27,360/- outside India for the....