SHRI ARINDAM DASGUPTA. ,KOLKATA vs. ACIT, IT-1(1), KOLKATA. , KOLKATA

ITA 1127/KOL/2023Status: DisposedITAT Kolkata20 February 2024AY 2014-15Bench: Shri Rajesh Kumar (Accountant Member)6 pages
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What did the Tribunal hold?

The Tribunal held that once the assessee qualifies as a non-resident, salary received for services rendered outside India is not taxable in India as per Section 5(2)(b) of the Income Tax Act. The Tribunal relied on various judicial precedents supporting this view, even in cases where a tax residency certificate was not initially provided.

What were the facts?

The assessee, a non-resident employee of IBM India, received salary for services rendered in the UK. The Assessing Officer (AO) taxed the entire salary, disallowing the exemption claimed under the India-UK Double Taxation Avoidance Agreement (DTAA) due to lack of a tax residency certificate. The Commissioner of Income Tax (Appeals) upheld the AO's order and further enhanced the income.

What were the issues?

Whether salary earned by a non-resident for services rendered outside India is taxable in India, and if the non-production of a tax residency certificate bars the application of DTAA benefits.

Which sections of the Income-tax Act were involved?

Section 5(2)(b),Section 6,Section 90(4)

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Income Tax Appellate Tribunal, “SMC” BENCH: KOLKATA

Before: Shri Rajesh Kumar]

Per Rajesh Kumar, AM:

This is an appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-22, Kolkata (hereinafter referred to as the Ld. CIT(A)”] dated 12.04.2023 for the AY 2014-15. 2. The only issue raised by the assessee in the various grounds of appeal is against the order of Ld. CIT(A) confirming the order of AO wherein salary receipt including foreign assignment allowance amounting to Rs. 26,10,209/- for services rendered outside India was to tax under the Act, 1961 by not allowing exemption claimed

2 A

The order continues below.

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