9911796707
TMI Blog2017 (1) TMI 952X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome outside India. The assessee earned salary income in India from his employer for the services rendered at UK and therefore, the salary earned in India is taxable as per section 5(2) of the Income Tax Act. In view of the above and as per DTAA, the assessee can claim exemption if he is resident of India. Since the assessee being non-resident, the ld. CIT(A) has held that the assessee is not eligible to claim exemption under Article 16(1) of the DTAA and accordingly confirmed the disallowance made by the Assessing Officer. Before us, the ld. Counsel for the assessee sought for permission for filing of additional supporting evidence by stating that the foreign allowances were received by the assessee outside India. After considering the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loss from house property of ₹ .147,187. 5. That the CIT(A) has grossly erred in facts and law in upholding the levy of interest under Section 234 B and 2340 of the Act amounting to ₹ . 37,150. 2. Brief facts of the case are that during the year relevant to the assessment year, the assessee was an employee of the company IBM India Private Limited. During the year under consideration, he was on international assignment to United Kingdom ('UK') and paid salary amounting to ₹.1,297,605/- from IBM for the services rendered by him. Out of which, the assessee has received gross salary in India of ₹.1,078,550/- and received ₹.219,055/- in UK. He filed his return of income claiming the statu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of the income tax act and DTAA between United Kingdom and India it is a fact that appellant is a employee of IBM India private limited, though he is put on assignment to get company's work done at United Kingdom but he remains the employee of IBM India private limited and accordingly the laws of India are applicable in the case of appellant. Assessee is paid at the home location of the company that is in India and having a bank account in India at home location. Thus the company sends him on assignment abroad for carrying out companies were independently assessee is not earning income outside India, it is for his services rendered outside India the generation of income in the hands of assesses takes place in India itself therefore t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bts, it is hereby declared that income which has been included in the total income of a person on the basis that it has accrued or arisen or is deemed to have accrued or arisen to him shall not again be so included on the basis that it is received or deemed to be received by him in India. Now it is issue before me that assessee can be given benefit of DTAA, as per article 24 of the DTAA it is mentioned as under subject to the provision of the law of India regarding the allowance as a credit against Indian tax paid in a territory outside India(which shall not affect the general principle here of) the amount of the United Kingdom tax paid, under the laws of the United Kingdom and in accordance with the revisions of this conventio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction of tax on employment amounting to ₹ 2,190/-. This ground of the appeal is allowed . On the ground of appeal that the learned Assessing officer has erred in law and facts, by not granting deduction under Section 80D of the Act amounting to ₹ 1,250. The assessing officer is directed to allow the same after proper verification. This ground of appeal is allowed. On the ground of appeal that the learned Assessing officer has erred in law and facts in levying interest of ₹ 17,028 under Section 234B and ₹ 20,122 under Section 234D of the Act on the aforesaid additions made to the total income of the Appellant. Charging of interest under section 234B and under section 234D is mandatory as per the statu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is an admitted fact that the assessee is a non-resident. And the assessee has stayed more than 180 days outside India. It is also a fact that the assessee was employed in IBM India Pvt. Ltd., though, he was deputed to do company s work at UK, but he remains the employee of IBM India Pvt. Ltd. Therefore, the law of India are applicable in assessee s case. The ld. CIT(A) has observed that the assessee was paid at the home location of the company i.e., India and the assessee has not independently earned any income outside India. The assessee earned salary income in India from his employer for the services rendered at UK and therefore, the salary earned in India is taxable as per section 5(2) of the Income Tax Act. In view of the above and as p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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