2023 (6) TMI 1270

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....143(3) Income-tax Act, 1961 (hereinafter referred to as 'the Act') dated 20.03.2015 by the Assessing Officer, Ward-59(3), New Delhi (hereinafter referred to as 'ld. AO'). 2. The assessee has raised the following grounds of appeal:- "1. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in denying relief under section 90 of the Income Tax Act 1961. 2. That in any view of matter and in any case, action of Ld. CIT(A) in confirming the action of Ld. AO in passing the impugned assessment order is beyond jurisdiction, illegal, in violation of principles of natural justice, contrary to law and facts and deserves to be quashed." 3. We have heard the rival ....

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....ection 15(e), it is chargeable under the head salaries. He, further, relies on section 9(1)(ii) to say that income under the head salaries is deemed to accrue or arise in India only if the services are rendered in India. However, in his case, the services were rendered outside India, therefore, as per the provisions of section 9(1)(ii), this income should not at all be charged to tax in India and be excluded from the total income. 17. The argument of the appellant is contrary to his return. In his return he has already offered income which had been received from the Singapore Company and on which the tax has been duly deducted by his present employer. In the return, he had only claimed relief under section 90 in respect of taxes paid but ....

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....rt of salary and is declared on the basis of performance and profits of the Company, it is not contractual income but is a gratuitous payment which arises or accrues only when the same is declared. Since the bonus was declared during the relevant previous year when the appellant was resident, it squarely falls within clause (c) of section 5(1) of the Act. In view of the above discussion, the bonus was chargeable to tax in India during the relevant year and tax has been properly deducted by his employer on the same. In view of the above discussion, appellant is entitled to a relief of Rs. 2,33,774/-in view of DTTA with Singapore read with section 90 of the Income Tax Act, 1961. This ground of appeal is rejected." 4. The main crux of the con....

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.... included by the assessee in his return of income and tax has been deducted by the Indian employer also. We find from Article 15 of the Double Taxation Avoidance Agreement entered into between India and Singapore, salary, wages and other similar remuneration derived by a resident of contracting state in respect of employment shall be taxable only in that state unless the employment is exercised in other contracting state. If the employment is so exercised, such remuneration as is derived there from may be taxed in that other state. Admittedly, the assessee herein was a non resident when he was rendering employment in Singapore Company in pursuance of which employment, the assessee was given bonus in June 2011. It is not in dispute that duri....