VISHAL GULATI,HARYANA vs. ACIT, CIRCLE INTERNATIONAL TAXATION1(3)(1) , NEW DELHI

ITA 2171/DEL/2022Status: DisposedITAT Delhi14 February 2024AY 2018-19Bench: Shri Challa Nagendra Prasad (Judicial Member), Dr. B. R. R. Kumar (Accountant Member)7 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that, after a concurrent reading of Sections 5, 9, and 15 of the Income Tax Act, 1961, no taxability arises on the salary/allowances received by the assessee. This decision was based on the fact that the assessee is a non-resident and has rendered the services outside India, therefore the income was not 'earned in India' as required for taxability under Section 9(1)(ii).

What were the facts?

The assessee, a non-resident (NRI), received salary from an Indian company for services rendered entirely outside India. The Assessing Officer (AO) made an addition of this salary income, proposing penalty proceedings, which the assessee challenged, arguing against taxability in India based on the Income Tax Act and India-UK DTAA provisions.

What were the issues?

Whether salary income received by a non-resident from an Indian company for services rendered wholly outside India is taxable in India under the Income Tax Act, 1961, and the India-UK Double Taxation Avoidance Agreement (DTAA).

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(b),Section 15,Section 5(2),Section 9(1)(ii),Section 270A,Section 139,Section 6,Section 10

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘D’, NEW DELHI

Before: Shri Challa Nagendra Prasad & Dr. B. R. R. Kumar

For Appellant: Ms. Shivani, Adv
Hearing: 01.02.2024Pronounced: 14.02.2024

Per Dr. B. R. R. Kumar:-

Delay Condoned:

2.

The present appeal has been filed by the assessee against the order of Assessing Officer dated 30.06.2022 for the A.Y. 2018-19. 3. The assessee has raised the following grounds of appeal:- “1. That on the facts and circumstances of the case & in law, the impugned assessment order passed under section 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.

The order continues below.

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