PRITPAL SINGH BASAN,JHARKHAND vs. COMMISSIONER OF INCOME TAX ( APPEAL), KOLKATA

Page 2 of 11 For Pritpal Singh Basan -Sd- Sumanta Saha & Kirti Kapoor (Authorized Representatives) 1.3 A similar application with slight modification has been filed for the A.Y. 2014-15. Considering the peculiar facts of the case, the condonation of delay application and the reasons stated therein and the non-disposal of the rectification application filed on 10.03.2017 which was to be decided within 6 months from the end of the month in which the application was received as per the provisions of sub-section (8) of section 154 of the Act but has not been decided, we are satisfied that the assessee was prevented by sufficient and reasonable cause from filing the instant appeal within the statutory time limit. We, therefore, condone the delay and admit both the appeals for adjudication on merits.

Brief facts of the case of the assessee as per the statement of facts are that the assessee is a marine engineer and remained for most of time out of India and totally relied on persons looking after filing of Page 5 of 11 Page 6 of 11 Page 8 of 11

In view of the CBDT Circular, the assessee is entitled to the claim of relief from the applicability of the provisions of section 5(2)(a) of the Act, which is also allowable to the income accrued outside India in view of the decision of the jurisdictional High Court in the case of Smt. Sumana Bandopadhyay & Another Vs The Deputy Director of Income Tax (International Taxation) GA 3745 of 2016, ITAT 374 of 2016 reported in 2017(7) TMI 503-Calcutta High Court wherein it is held that “We concur with the ratio of the decision of the Karnataka High Court and in our opinion the interpretation be given to sub Section (b) of Section 5(2) of the Act would also apply to Section 5(2)(a) of the Act. The Circular is clarificatory in nature and is applicable for construing the aforesaid provision for the relevant assessment year. In our opinion the authorities under the Income Tax Act did not properly apply the provisions of law to the case of the assessee. We are of the view that the Assessing Officer was wrong in adding the aforesaid sum to the income chargeable to tax of the assessee for the relevant assessment year. We accordingly allow the appeal and answer the question framed by us in favour of the assessee.” Hence, the salary received/accrued outside India will not be taxable as per the provisions of section 5(2)(a) or 5(2)(b) merely because the same has been credited in an NRE account in India.