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TMI Blog2016 (12) TMI 1840X X X X Extracts X X X X X X X X Extracts X X X X ..... accrued and received outside India and ignored the status of assessee as Not Ordinarily Resident and the provisions of section 5(1)(c) of the Act. 2. The Brief facts of the case that the assessee is a salaried employee and filed Return of income for the assessment year 2010-11 disclosing total income of Rs. 75,70,698/-. Subsequently, Return of income was processed u/s. 143(1) of the Act with Addition of Rs. 1,19,49,709/- in respect of stock options earlier allotted and sold in USA in the financial year 2009-10. The contention of the Ld. AR after filing of the Return of income, the assessee has furnished the details and Documents of the "stock options" allotted irrespective of assessment or notice from Jurisdictional Assessing Officer. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions and deducted tax at source (TDS). Whereas, the assessee filed the Return of income for assessment year 2010-11 excluding the sale transaction of stock options as the assessee being a Not Ordinarily Resident (NOR) and claimed refund of Rs. 36.92.337/- but Return of income was processed u/s. 143(1) on 15.03.2012 with addition of Rs. 1,19,49,709/- and determined of Rs. 120/- as payable. 3. Aggrieved by the intimation u/s. 143(1) of the Act, assessee filed an appeal with Commissioner of Income Tax (Appeals). The Appellate Authority has received the information filed by the assessee on the various dates. The contention of the Ld. CIT(A) that the assessee has filed letters but not represented the case and also filed written submissions and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome and Residential state under the provisions of section 5 and 6 of the Income Tax Act for taxation purpose. The Ld. AR relied on Delhi High Court decision in the case of CIT Vs. Anantha Jain ITA No. 165/2009 dated 24.04.2012 wherein held that:- "It is clear from the factual findings recorded by both CIT(A) and the Tribunal that the payment in question was received towards retirement benefit/severance/vacation engagement from the erstwhile employer on termination of employment in November, 1999. The erstwhile employer was based in USA and services were rendered to the erstwhile employer in USA. In view of the aforesaid factual position, elucidated and accepted by both the CIT(A) and the Tribunal, we do not think the said amount can be ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r has passed intimation u/s. 143(1) considering the perquisite of stock options and determined tax payable to Rs. 120/-. 5. We heard the rival submissions, perused the material on record and judicial decisions. In this case, the assessee filed return of income on 31.07.2010 declaring total income of Rs. 75,70,698/- and claimed refund of Rs. 36,92,337/- The return was processed u/s.143(1) of the Act on 15.3.2012 and income was determined at Rs. 1,95,20,410/- by denying the exemption claimed by the assessee towards receipt at Rs. 1,19,49,709/- said to be sale of stock options granted in the U.S.A while he was working in Google Inc. USA. Thus there was a demand of Rs. 120/- towards tax outstanding. Now, the argument of the Ld. AR is that asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act included the income from sale of stock option as income of the assessee. Now the assessee claimed that it could not have been done by the AO at the stage of prima facie adjustments u/s. 143(1) of the Act. In our opinion, when the information is available on record by way of Form No.16 annexed to the return of income the AO cannot keep quiet without making corrections while processing return u/s.143(1) of the Act. In our opinion, the AO is within his jurisdiction in considering the income from sale of stock options as income of assessee which is evident from the Form No.16 attached with the return of income. Being so, we do not find any infirmity in the order of lower authorities. 5.2 The ld. AR made one more plea before us that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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