TaxTMI 
TaxTMI 
2024 (2) TMI 1372
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....tion 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 of the case & in law, the Ld. AO erred in not appreciating the applica....
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.... 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 ordinarily resident in India within the meaning of sub-section (6)* of section 6, the income which accrues or arises to him outside India shall not be so included unless it is derived from a....
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....rue 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 business having business connection in India on account of significant economic presence, of which all the operations are not carried out in India, the income of the business deemed under this clause to accrue or arise in India shall be only such part of the income a....
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.... (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 of employment, shall be regarded as income earned in India ; (iii) income chargeable under the head "Salaries" payable by the Government to a citizen of India for service outside India ; 9. As per the provision of Section 9 (1)(ii), the income earned under head "Salaries" is taxable in India "if it is earned" in India. The explanation issued for removal....