|The Tax Publishers2020 TaxPub(DT) 5622 (Hyd-Trib) : (2020) 079 ITR (Trib) 0465
INCOME TAX ACT, 1961
Where assessee received salary income and the foreign allowance for services rendered outside India, assessee's claim of exemption in regard to his salary income as per the provisions of article 15(1) of the India-Austria DTAA in the return of income filed by him was appropriate because salary and allowances were earned by assessee, non-resident in respect of employment rendered in Austria due to his foreign assignment.
Double taxation relief - Allowability - Assessee received salary income and the foreign allowance for services rendered in Austria due to his foreign assignment -
Assessee challenged order of CIT(A) upholding the order of AO, who brought to tax salary income and the foreign allowance received by assessee for services rendered outside India. Case of assessee was that AO ignored Article 15(1) of India-Austria DTAA agreement and section 90 and section 5(2) of Income Tax Act, 1961. Held: During the previous relevant to assessment year (2014-15), as assessee qualified as a non-resident in India and as a tax resident in Austria. The salary and allowances were earned by assessee in respect of employment rendered in Austria due to his foreign assignment. Therefore, the first two conditions enumerated under Article 15(1) of the India-Austria DTAA stood satisfied. Therefore, assessee's claim of exemption in regard to his salary income as per the provisions of Article 15(1) of the India-Austria DTAA in the return of income filed by him was appropriate. Other objections raised by AO that evidence was not produced for receiving the foreign allowance outside India and the bank account of the assessee maintained abroad was not produced, was not relevant because the facts of the case established that the salary and the foreign allowance was received in India for the services rendered abroad and by virtue of DTAA and Income Tax Act, 1961, there is no bar in law for receiving the money in India.
REFERRED : Serco BPO Private Limited v. Authority for Advance Rulings New Delhi & Ors. (2015) 379 ITR 256 (P&H) : 2015 TaxPub(DT) 3412 (P&H-HC), DIT & Anr. v. Prahlad Vijendra Rao (2011) 239 CTR 107 (Karn-HC) : 2011 TaxPub(DT) 609 (Karn-HC), Skaps Industries India (P) Ltd, C/o Vinit Moondra, CA v. ITO (2018) 171 ITD 723 (Ahd-Trib) : 2018 TaxPub(DT) 3566 (Ahd-Trib) and ITO-I (International Taxation) v. Sri Sunil Chitranjan Muncif (2013) 58 SOT 356 (Ahd-Trib) : 2013 TaxPub(DT) 2140 (Ahd-Trib)
FAVOUR : In assessee's favour.
A.Y. : 2014-15
IN THE ITAT, HYDERABAD BENCH
SUBSCRIBE FOR FULL CONTENT