2024 (2) TMI 1371

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....ces of the case and in taw the AO has erred in completing the assessment of the Appellant at an income of INR 1,05,42,085 as against NIL taxable income retuned in the income tax return 2. That on the facts and circumstances of the case and in law, the Dispute Resolution Panel ("DRP")/AO have erred in not granting benefit of tax exemption under Article 15 of the India - Ireland Double Taxation Avoidance Agreement (DTAA). 3. That on the facts and circumstances of the case and in law, the AO/ DRP have erred in incorrectly interpreting the letter of assignment while making an addition of INR 1,05,42,985 in respect of the salary received by the Appellant from her international assignment and borne by British Airways PLC (Irelan....

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...., the assessee rendered services outside India (i.e. in Ireland) and was a tax resident of Netherlands by virtue of the Tax Residency Certificate ("TRC"). Further, in the relevant F.Y., the total stay of the assessee in India was less than 60 days. Accordingly, by virtue of section 6(1) of the Income-tax Act, 1961, the assessee qualified as Non-Resident in India for the impugned Assessment Year. The said fact of the assessee being a resident and the services were rendered outside India is an accepted position and not disputed by the AO in his order. 5. While on the deputation, for administrative convenience and on behalf of BA PLC, Ireland, the assessee received salary in India in respect of the services rendered outside India i.e., in I....

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....alary income earned by the assessee for services rendered in Ireland is not taxable in India as the assessee being non-resident and covered under Article 15(1) of India - Ireland DTAA. 11. During the course of assessment proceedings, the assessee had provided following documents to substantiate the claims made: a) Letter of Assignment dated February 21, 2019. b) Certificate/letter by the BA PLC, India in relation to salary received by her. c) Certificate/letter by the BA PLC, Ireland in relation to reimbursement of salary paid by BA PLC, India to the Assessee. d) Tax residency certificate e) Income Tax Return filed in Ireland for the year 2019. f) Income Tax Return filed in Ireland fo....

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.... more than 183 days in India, and (2) If the employment is exercised outside India. 15. In the present case, both the conditions prescribed in the Article 15 are satisfied. The first condition has not been disputed by the Assessing Officer, whereas the second condition has been justified by various evidences furnished by the assessee. The Assessing Officer himself in para 7 of the Assessment Order has accepted that the services were rendered outside India. 16. Therefore, it is hereby held that the assessee was a residing and exercising employment in Ireland under the complete control of BA PLC, Ireland for the impugned Assessment Year. Further, the salary was also borne by BA PLC, Ireland. Thus, the salary of the assessee der....