9911796707
|
Home
Issues involved: Taxability of salary income earned outside India but received in India by a non-resident individual for the assessment year 1983-84.
Summary: The appeal was filed by a non-resident individual against the order of the AAC for the assessment year 1983-84, where the issue was the taxability of salary income earned outside India but received in India. The ITO included a portion of the salary received in India in the total income of the assessee, which was contested by the assessee before the AAC. The AAC upheld the taxability of the salary income in India based on section 5(2) of the Income-tax Act, 1961. The assessee argued that since the services were rendered outside India, the salary income should not be deemed to accrue or arise in India as per section 9(1)(ii) and should not be taxable in India. The department, however, supported the taxability of the salary income on a receipt basis under section 15, emphasizing that income received in India by a non-resident is taxable as per section 5(2)(a). The Tribunal considered the contentions and facts, noting that the salary income accrued outside India but was received in India during the same accounting year. It was held that salary income is chargeable on a due basis under section 15(a) regardless of actual receipt, and in this case, the salary income should be excluded from the total income of the assessee. The Tribunal disagreed with the department's interpretation and allowed the appeal, holding that the salary income of Rs. 56,000, which accrued outside India, should be excluded from the total income of the assessee.
|
