KAUSHAL GANPATBHAI PATEL,AHMEDABAD vs. THE ITO, WARD-1(INTL. TAXATION), AHMEDABAD

ITA 434/AHD/2025Status: DisposedITAT Ahmedabad09 February 2026AY 2019-20Bench: SHRI SANJAY GARG (Judicial Member), SMT. ANNAPURNA GUPTA (Accountant Member)8 pages
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What did the Tribunal hold?

The Tribunal held that the deposit of salary earned outside India into an NRE account in India does not constitute 'receipt' of income in India as per Section 5(2)(a) of the Income Tax Act. Therefore, the salary income is not taxable in India.

What were the facts?

The assessee, a non-resident, received salary for services rendered outside India, which was deposited into his NRE account in India. The Assessing Officer treated this salary as taxable in India based on its receipt in India.

What were the issues?

Whether salary earned by a non-resident for services rendered outside India, and deposited into an NRE account in India, is taxable in India under Section 5(2)(a) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 5(2)(a)

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Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SHRI SANJAY GARG & SMT. ANNAPURNA GUPTA

For Appellant: Shri Dhinal Shah, AR, Shri Rameshwar P Meena, Sr.DR
Pronounced: 09.02.2026

PER: ANNAPURNA GUPTA - AM: The present appeal has been filed by the assessee against the order passed by the Assessing Officer in accordance with the direction of the Dispute Resolution Panel (“DRP”) under Section 147 r.w.s. 144C(13) of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) order dated 03.12.2024 and relates to Assessment Year (A.Y.) 2019-20. 2. The Grounds of Appeal raised by the assessee are as under:

“1. Ground No. 1 – Addition on account of alleged undisclosed salary income of Rs. 44,24,000:

1.1.

On the facts and in the circumstances of the case and in law, the learned Assessing Officer ("AO")/Hon'ble Dispute

The order continues below.

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