SMT. NEHA CHAWLA,HUDCO vs. THE ITO (IT&TP), BHOPAL

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ITA 127/IND/2021Status: DisposedITAT Indore30 November 2022AY 2016-174 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal decided to remit the issue back to the Assessing Officer for fresh adjudication. This was to allow the AO to examine the additional evidence submitted by the assessee and provide a proper opportunity of being heard.

What were the facts?

The assessee claimed exemption for a portion of her salary income based on the India-UK DTAA, but failed to provide a Tax Residency Certificate (TRC). The Assessing Officer (AO) added this income back, which was upheld by the CIT(A). The assessee then submitted additional evidence, including a TRC and assignment letter, to the ITAT.

What were the issues?

Whether the salary income earned outside India is taxable in India when the assessee fails to provide a valid TRC, and whether additional evidence submitted at the appellate stage should be considered.

Which sections of the Income-tax Act were involved?

Section 90(4),Section 5(2),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: Ms. MADHUMITA ROY & SHRI BHAGIRATH MAL BIYANI

For Appellant: Shri Ketan Ved, C.A
For Respondent: Shri Ashish Porwal, Sr. D.R
Hearing: 30.11.2022

The instant appeal filed by the assessee is directed against the order dated 21.04.2021 passed by the Ld. CIT(A)-13, Ahmedabad arising out of the order dated 06.12.2018 passed by the ITO(IT&TP), Bhopal under Section 143(3) of the Act, 1961 (hereinafter referred to as “the Act”) for A.Y. 2016-17 whereby and whereunder the addition in respect the salary income to the tune of Rs. 58,11,613/- of the assessee.

2.

We have heard the rival submissions made by the respective parties, and we have also perused the relevant materials available on record.

Smt. Neha Chawla vs. ITO (IT&TP) Asst.Year –2016-17 - 2 – 3. At the threshold of the matter the Ld. Counsel appearing for the assessee submitted before us that he has filed certain documents as additional evidences before us on 07.07.2021 being Tax Residency Certificate obtained for the year under consideration and letter of assignment entailing terms and conditions of placement by Hindustan Unilever Ltd. in the United Kingdom. Since this additional evidences were not examined by the authorities below the same to be remitted to the file of the Assessing Officer for examination of the same and to pass order afresh.

Relevant to mention that the assessee has shown salary income of Rs. 1,90,674/- for the period from 01.04.2015 to 06.04.2015 as income taxable in India and salary income of Rs. 58,11,613/- for the remaining period of F.Y. 2015-16 to be exempted from tax in India on the strength of India-UK DTAA as the case made out by the assessee. Since no TRC as required Under Section 90(4) of the Act was filed by the appellant the Assessing Officer held the salary income of Rs. 58,11,613/- qualified as income under Section 5(2) of the Act and accordingly the claim of exemption was withdrawn and the above was added to the total income of the assessee which was further confirmed by the Ld. CIT(A).

4.

The Ld. D.R. on the other hand, with all his fairness did not object to the contention made by the Ld. A.R. in setting-aside the issue to the file of the Ld. AO for fresh adjudication of the same. Under this facts and circumstances of the case we also find it fit and proper to grant proper opportunity of being heard to the assessee and of course the additional evidence which have been filed before us to be taken into consideration by the Revenue in adjudicating the issue. Thus, with this observation we set-

Smt. Neha Chawla vs. ITO (IT&TP) Asst.Year –2016-17 - 3 – aside the issue to the file of the Ld. AO for adjudication of the same afresh upon giving an opportunity of being heard to the assessee and upon examining the evidences already on record or any other evidence which the assessee may choose to file at the time of hearing of the matter. We further make it clear that other issues related to the interest under Section 234B and Section 234D is also directed to be verified by the Ld. AO. The Ld. AO is further directed to pass a reasoned order strictly in accordance with law. The assessee’s appeal is, therefore, allowed for statistical purposes.

5.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced on /11/2022 by placing the result on the Notice Board as per Rule 34(4) of the Income Tax (Appellate Tribunal) Rule, 1963. This Order pronounced in Open Court on 30 /11/2022 Sd/- Sd/- Sd Sd/- Sd/- (BHAGIRATH MAL BIYANI) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 30/11/2022 TRUE COPY TANMAY, Sr. PS आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त(अपील) / The CIT(A)- 5. �वभागीय ��त�न�ध, आयकर अपील!य अ�धकरण, अहमदाबाद / DR, ITAT, Indore 6. गाड' फाईल / Guard file. आदेशानुसार/ BY ORDER, (Sr. Private Secretary) ITAT, Indore

Smt. Neha Chawla vs. ITO (IT&TP) Asst.Year –2016-17 - 4 –

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