9911796707
TMI Blog2023 (6) TMI 1270X X X X Extracts X X X X X X X X Extracts X X X X ..... r arising to him in India and it is also received during the year by the assessee. Hence, the bonus received by the assessee, being a resident would be taxable for the year under consideration in India. As in terms of section 90 entire taxes paid by the assessee in Singapore for the very same salary and bonus component, would be eligible for tax credit for the assessee. We are unable to apprehend ourselves to accept to the tax credit calculation determined by the ld. AO in the instant case by working out @5.92% which has no support from the provisions of Act or in DTAA. Hence, the said determination of foreign tax credit by the AO is hereby rejected. Direct the ld AO to allow the foreign tax credit in full in respect of tax paid in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on record. The assessee during the year under consideration, is a resident individual and had filed his return of income for AY 2012- 13 on 23.07.2012 declaring total income of Rs. 1,42,58,599/-. The assessee had declared income under the head income from salary, income from house property and income from other sources. During the course of scrutiny assessment proceedings, the ld AO found assessee had claimed relief u/s 90 of the Act in respect of bonus received from his previous employer in Singapore amounting to Rs. 12,18,677/-. The AO in para 5 of his order had stated that the assessee had received salary for the period from January 2011 to March 2011 amounting to Singapore $ 58865 and bonus amounting to Singapore $ 109859. The ld AO a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax in respect of entire bonus received. 1, however, do not agree with the alternate argument of the appellant for the following reasons:- (i) During the relevant Assessment Year 2012-13, the appellant is a resident of India which can be seen from his return of income. As per section 5 of the Act, a resident is liable in respect of:- (a) income received or deemed to received in India; (b) income which accrues or arises or deemed to accrue or arise in India; (c) Income which accrues or arises to him outside India. (ii) The appellant has stated that the amount of bonus was received by him in his bank account at Singapore and therefore, the income was not received in India. He, thereafter, states that as per provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition by the ld CIT(A) is that the assessee, being a resident during the year under consideration, this sum of bonus though pertaining to employment services rendered in Singapore but received during the year under consideration by the assessee, shall be treated as income accruing or arising to him in terms of section 5 of the Act. The ld CIT(A) however, accepted the fact that the bonus was declared by the Singapore Company only on 1st June 2011 and accordingly concluded that this income had accrued and arisen to the assessee during the year under consideration, in which year the assessee is a resident. 5. It is not in dispute that this bonus is received by the assessee form the Singapore Company in respect of employment services render ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which bonus is received, the assessee was serving only in Singapore and not in India. On perusal of the provisions of section 5(1) of the Act, the said bonus income would have to be construed as income accruing or arising to him in India and it is also received during the year by the assessee. Hence, the bonus received by the assessee, being a resident would be taxable for the year under consideration in India. However, in terms of section 90 of the Act, the entire taxes paid by the assessee in Singapore for the very same salary and bonus component, would be eligible for tax credit for the assessee. We are unable to apprehend ourselves to accept to the tax credit calculation determined by the ld. AO in the instant case by working out @5.92 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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