TaxTMI 
TaxTMI 
2024 (12) TMI 807
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....C(3) of the Act on 31-05-2022. The grounds raised by the assessee read as under:- 1. That the Ld. AO has erred in law and on facts in determining the assessed income of INR 38,61,140 as against Nil income declared in the ITR (filed by the Appellant, thereby resulting in additional tax liability of INR 84,486 as against refund of INR 10,08,960 claimed in the ITR filed by the Appellant. 2. The Ld. AO has erred in law and on facts in not granting benefit of exemption claimed by the Appellant under section 90 of the Act read with Article 16(1) of India-UK Treaty in the ITR stating that the situs of employment is in India and the salary was accrued/ earned in India, though services were rendered by the Appellant in UK during th....
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....rovisions of section 5(2)(a) of the Act, though the said section has to be read with other relevant provisions of the Act which is section 9(1)(ii) and section 15, which provides for taxability of salary on the basis of accrual and not on the basis of receipt of salary income. 7. The Ld. AO has erred in law and on facts in considering the treatment of the salary cost in the books of the employer and taxes deducted on the same to decide on the taxability of salary income in the hands of Appellant as being earned in India ignoring the provisions of section 15 read with section 5(2) and section 9(1)(ii) of the Act. 8. The Ld. AO has erred in relying on few judicial precedents in concluding that the Appellant is not eligible t....
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....assessee being non-resident individual filed return of income declaring income of Rs. 2295/- and claiming refund of Rs. 10.08 Lacs. The assessee earned salary of Rs. 39.47 Lacs from his employer M/s Oracle Financial Services Software Ltd. (OFSSL) and claimed salary to be exempt to the extent of Rs. 39.41 Lacs under Article 16(1) of India UK DTAA. It transpired that the assessee was working under administrative control of OFSSL and he was sent on an international assignment to UK. The salary amount was received in Indian Bank Account of the assessee and OFSSL issued Form 16 to the assessee. The assessee stated that the salary earned from international assignment was offered to tax in UK Tax Return. However, Ld. AO observed that the assessee ....
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.... the period 06-04-2019 to 05-04-2020. Therefore, lower authorities have erred in noting that the assessee has not paid any taxes in UK. Though the tax may have been paid / reimbursed by the employer, nevertheless, the assessee has offered income on gross basis and subjected to tax in UK. Therefore, the claim of the assessee is to be allowed. 6. We find that similar issue has been decided by co-ordinate bench of this Tribunal, in assessee's favor in ITA No.2936/Chny/2018 dated 07- 09-2022 in the case of Shri Kangaraj Shanmugam. On identical facts, it was held by the bench as under: - Our findings and Adjudication 5. From the fact it emerges that the assessee has stayed in India for 63 days during this year and his status....
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.... that Treaty benefit shall be applicable to persons who are residents of both India as well as Australia. Therefore, the contention of the revenue that the assessee being a non-resident and hence treaty benefit cannot be extended to assessee, is incorrect. Accordingly, it was held by the bench that the salary so earned for work performed in Australia would be taxable in Australia. The case law of Swaminathan Ravichandran V/s ITO (ITA No.2911/Mds/2016 dated 05.08.2016) was held to be factually distinguished on the ground that in that case the assessee was claiming foreign tax credit relief for taxes paid on doubly taxed income which was not the case in that appeal. In para-7, the bench found the issue to be covered in assessee's favor by var....