2024 (11) TMI 1316

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....the assessee is an employee of IBM India Pvt. Ltd. (an Indian company with registered office in Bangalore) and was undergone a short-term assignment to Indonesia during the relevant assessment year. During the financial year 2015-16, the stayed 61 days in India as evident by the passport details submitted before the Assessing Officer. Consequently, the assessee claimed to be a non-resident for the assessment year 2016-17 as per the provisions of the Income Tax Act. During the assessment year in question, the assessee received salary amounting to Rs. 29,57,760/- in India, on which Rs. 7,06,207/- was deducted as tax at source as per Form No.16 filed by the assessee. During the relevant assessment year, the assessee also received remuneration ....

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.... well. 3. Dissatisfied with the above order, the assessee went in appeal before the ld. CIT(A) contending that the foreign income during service rendered outside India qualifies for exemption u/s 5(2) of the Act and Article 15(1) of the India Indonesia DTAA. However, the ld. CIT(A) dismissed the appeal of the assessee sustaining the findings of the Assessing Officer. 4. Aggrieved by the above order of the ld. CIT(A), the assessee is now in appeal before this Tribunal. The primary contention of the assessee is as follows: a) the assessee was a non-resident during the relevant assessment year; b) only the income earned or accrued in India is taxable u/s 5(2) of the Act; c) the allowances received from foreign assignment for rendering ....

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.... salary and allowances should be deemed to have accrued or arisen in India, therefore, the appeal of the assessee should be dismissed in limine. 6. We, after hearing the rival submissions of the parties and perusing the material available on record, find that based on the passport details, the assessee was present in India for only 61 days during the financial year 2015-16 which qualifies as a non-resident u/s 5(2) of the Act and only income received or deemed to have accrued or arisen in India, is taxable for a non-resident. We undisputedly note that the assessee is a non-resident employee in IBM India Pvt. Ltd. (an Indian Company) and was sent to abroad to Indonesia for rendering services there. We find no dispute that the services were ....