TaxTMI 
TaxTMI 
2023 (7) TMI 27
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....nt year 2018-19, assessees preferred these appeals. For the sake of convenience, we dispose of these appeals by this common order. 2. Only question that is central in all these appeals is whether the foreign assignment allowance received by the assessee for the services rendered outside India could be taxed in India? 3. Brief facts are that the assessees are the employees of IBM India Private Limited, which is an Indian company. The said company sent the assessees on long term assignment to various countries. During that year, the assessees received salary which includes the component of the foreign allowance received outside India. The employee transferred the foreign assignment allowance from the bank accounts held in India to the nostr....
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....red appeals before the learned CIT(A). The learned CIT(A) concurred with the observations of the learned Assessing Officer and held that the place of accrual of salary income is in India and the other country is a host country as per the terms of assignment contract that TDS made by the employer is the primary evidence to show that the situs of employment is in India and the entire salary is accrued to the assessee in India. Learned CIT(A) accordingly dismissed the appeals preferred by various assessees. learned CIT(A) further held that insofar as the ITA No. 366/Hyd/2022 in the case of Tadimarri Prasanth Reddy is concerned, this person did not pay any tax in UAE and, therefore, if the foreign assignment allowance to treat as non-taxable in....
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....side India, such income cannot be taxed in India under section 5(2) of the Act. 8. Learned DR argued very vehemently in the same line as that of the authorities below to submit that since the assessee is on the pay rolls of the Indian company even during his assignment abroad, his service conditions are controlled and governed by the parent company in India and also because the parent company deducted TDS on the entire remuneration received by the assessee, this conclusively proves that the situs of employment is in India. According to him, merely because the assessee were directed to perform duties on foreign soil for a temporary period of time, it does not take away the right of the Revenue to collect tax on such amount, which was accrue....
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.... to the banker is equivalent to payment to the assessees. Apart from that, Revenue vehemently contended that though the assessees are sent on foreign assignment, the umbilical cord still lies with the Indian company inasmuch as salary is paid by the Indian company and all the service conditions are controlled by the Indian company. 11. On a careful consideration of the contentions raised on either side, in the light of the decisions relied upon by the assessees, we are of the considered opinion that this issue is no longer res integra and all the aspects raised by the Revenue are elaborately and exhaustively dealt with by co-ordinate Benches of this Tribunal in the cases of Bodhisattva Chattopadhyay vs. CIT (supra), Sri Ranjit Kumar Vuppu ....