TaxTMI 
TaxTMI 
2024 (2) TMI 1372
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....aw, the impugned assessment order passed under section 143(3) r.w.s. 144C(b) by Learned Income Tax Officer, Circle Int. Tax 1(3)(1) ("Ld. AO") in pursuant to directions of Ld. Dispute Resolution Penal ("Ld. DRP") is wrong and bad in law and liable to be quashed. 2. That on the facts and circumstances of the case & in law, the Ld. AO erred in not following the specific direction of the Ld. DRP in the impugned assessment order, hence liable to be quashed. 3. That on the facts and circumstances of the case & in law, the Ld. AO erred to make the addition of salary income of INR 80,41,012 ignoring the provisions of section 15 read with section 5(2) and section 9(1)(ii) of the Act. 4. That on the facts and circumstances....
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.... salary paid by the Indian company to a non-resident is examined with reference to the provisions of Section 5, Section 9, Section 15 of the Income Tax Act, 1961. Section 5 Income Tax Act reads as under: "Scope of total income. 5. (1) Subject to the provisions of this Act, the total income of any previous year of a person who is a resident includes all income from whatever source derived which- (a) is received or is deemed to be received in India in such year by or on behalf of such person or (b) accrues or arises or is deemed to accrue or arise to him in India during such year ; or (c) accrues or arises to him outside India during such year : Provided that, in the case of a person not o....
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....rative to examine the provisions of taxability of salary received by nonresident from an Indian company as per the provisions of section 9 of the Income Tax Act. Section 9 Income Tax Act reads as under: "Income deemed to accrue or arise in India. 9. (1) The following incomes shall be deemed to accrue or arise in India :- ^27(i) all income accruing or arising, whether directly or indirectly, through or from any business connection in India, or through or from any property in India, or through or from any asset or source of income in India, or through the transfer of a capital asset situate in India. Explanation 1.-For the purposes of this clause- (a) in the case of a business, other than the busin....
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....ing of diamonds, no income shall be deemed to accrue or arise in India to it through or from the activities which are confined to the display of uncut and unassorted diamond in any special zone notified by the Central Government in the Official Gazette in this behalf. ...................... ...................... (ii) income which falls under the head "Salaries", if it is earned in India. Explanation.-For the removal of doubts, it is hereby declared that the income of the nature referred to in this clause payable for- (a) service rendered in India; and (b) the rest period or leave period which is preceded and succeeded by services rendered in India and forms part of the service contract ....