9911796707
TMI Blog2009 (12) TMI 811X X X X Extracts X X X X X X X X Extracts X X X X ..... al tax was unsustainable and the ITAT rightly deleted the said addition. No question of law, therefore, arises. We accordingly dismiss all these appeals. - ITA NO. 1308/2008, 1103/2006, 1285/2006, 309/2007 and 217/2008 - - - Dated:- 16-12-2009 - A.K. Sikri and Siddharth Mridul, JJ. For the Appellant : Prem Lata Bansal and Anshul Sharma, Advs. For the Respondent : Pratyush Jain, Adv. and Dipeep Poolakkut, Adv., JUDGEMENT:- PER : A.K. Sikri All these appeals raise common question of law. The assessees in all these appeals are foreign nationals who came to India for specific purpose where they served as employees of the foreign companies. They are in fact employees of those foreign employers who were deputed to India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an be demonstrated by the following example: Suppose in US, gross salary is Rs.100/-, of which Rs.25/- payable as tax, net amount receivable by the assessee in US would be Rs.75/-. Likewise, suppose in India tax payable is Rs.15/-. Since, the assessee is assured net amount receivable in US, he would get Rs.75/- and the difference of Rs.10/- is treated as 'hypothetical tax'. 4. The assessee claimed the deduction of this hypothetical tax, which was rejected by the Assessing Officer (AO). The ITAT has, however, allowed the same. From the example which we have given above, it is clear that insofar as the assessee is concerned, he had received only Rs.90/- (that is Rs.75/- + Rs.15/-; Rs.10/- was not received at all in view of the nature of arr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e as salary. Hence it was perfectly justifiable to remove the element of Rs.500/- from the total income as it never accrued to the assessee. We are not concerned as to what the assessee does in the US according to tax laws there. Whether he takes the credit of Indian taxes there or not, as was suggested by the Ld. DR. is not really our concern,. Our concern is whether he is paying the tax on income accruing and arising in India or not. In our opinion, the income arising in India in the present case is actual salary plus the incremental tax liability arising on account of Indian assignment. The question whether it is an application of income in quite redundant because Rs.500/- in the illustration above never accrued to the assessee. Thus in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
