TaxTMI 
TaxTMI 
2026 (6) TMI 95
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....ssee revised his ITR and showed loss of Rs. 1,63,489/- In this regard, notice u/s 142(1) alongwith questionnaire dated 04.12.2019, 14.12.2019 and 19.12.2019 were issued by the AO and served upon the assessee, in which it was specifically asked to furnish details regarding large refund claim and showing Nil income in revised ITR alongwith supporting documents and evidences. The AO noted that the assessee in his submission made through email stated that he was sent on international assignment to the UK and was exercising employment in the UK and claimed exemption under Article 16 of India-UK DTAA of Rs. 27,10,163 and the balance salary income of Rs 35,506/- was offered to tax in the revised ITR. Thereafter, a notice dated 19.12.2019 was issued and served upon the assessee, through which the assessee was asked to explain the reasons for difference in revised ITR in India and income shown in UK and why the difference may not be added back to your income. The AO noticed the assessee made his online submission, in which he stated that:- "During the period of international assignment, my payroll remained in India and the employer withheld Income Tax on the salary received by me i....
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....e reproduced submission the appellant has claimed that total income of Rs. 10,84,068/- was taxed in UK after allowing deduction of Per-Diem of Rs. 16,17,724 as claimed exempt in UK. However, on perusal of the UK tax return submitted by the appellant, it is seen that no such amount was claimed exempt by the appellant in UK tax return. The appellant declared Rs. 10,48,562/- equivalent to 12,151GBP as salary income in UK tax return. The appellant has out of this amount further claimed benefit of deduction of 11,000GBP as personal allowance in UK tax return. Thus, the taxable income reported by the appellant in UK tax return was 1,151GBP only. Hence, it is inferred that the appellant has nowhere mentioned the per-diem allowance in UK tax return. 5.1.4 During the appeal proceedings, the appellant also submitted copy of Form 16 issued by the employer of the appellant and copy of assignment letter wherein terms and conditions are mentioned for rendering services in UK. On perusal of assignment letter, it is noticed that the employer has clearly mentioned that per-diem allowances will be in the currency of host country and are subject to tax. It is further noticed that Form 16 iss....
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....e submissions dated 26 August 2022, 20 September 2023, 18 October 2024 and 13 December 2024. 3. The Hon'ble CIT(A) has in the facts and circumstances of the case and in law erred in not granting an opportunity of hearing to the appellant and issued the impugned order in violation of the principles of natural justice. 4. The Hon'ble CIT(A) has in the facts and circumstances of the case and in law erred in disallowing the exemption under Article 16(1) of the India-UK Double Taxation Avoidance Agreement (DTAA) read with Section 90 of the Act merely on the ground that the appellant failed to substantiate his claim that income earned by him for services provided in UK was fully offered for tax in UK. Any consequential relief, to which the Appellant may be entitled under the law in pursuance of the aforesaid grounds of appeal, or otherwise, may be thus granted. The Appellant may kindly be given an opportunity of being heard as per the principles of natural justice. The Appellant craves leave to add, alter, omit or substitute any or all of the above grounds of appeal, at any time before or at the time of appeal, to enable the Hon'ble Income-....
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....aper book and the computation of income was placed at page no. 22 and 23 of the paper book, which showed that the assessee had offered a sum of 12,151/-,( sterling value) equivalent to Rs. 10,84,068/- as his taxable income in UK. 6. On the other hand, the ld. Sr. DR supported the orders of the authorities below. 7. We have heard both the parties and perused the material available on record. In this case, during the year the assessee was an employee of Ernst & Young LLP, INDIA and was assigned to United Kingdom to work with Ernst & Young, UK from 01.04.2016 to 31.03.2017. The copy of the said assignment agreement for the said employment is placed at page no. 1-6 of the paper book. Further, the assessee had stayed in India for less than 60 days during the financial 2016-17 and accordingly the assessee qualified as a non-resident in India for the AY 2017-18 as per Explanation to 6 (1) of the Act. Further, the assessee has filed a copy of the passport of the assessee evidencing the stay details in India at page no. 26-57 of the paper book in support of his non-resident status. The assessee also filed a copy of Tax Residency Certificate of the UK issued to the assessee for the per....