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TMI Blog2023 (7) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... KATA] the facts are identical wherein assessee was found to be a non-resident and the assessee received the foreign assignment allowance which the employer transferred from the employer s bank account held in Bangalore to Axis Bank nostro account for top up to the TCC and also that the employer affected TDS on the entire remuneration that was paid to the assessee both in India and abroad - the foreign assignment allowance that was topped up to the TCC of the assessee, though it was transferred by the employer from their bank account in India to the Axis bank s nostro accounts, is not taxable in India. The Tribunal repelled contentions of the Revenue as to the double non-taxation of this amount, because it was not subjected to any tax in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company sent the assessees on long term assignment to various countries. During that year, the assessees received salary which includes the component of the foreign allowance received outside India. The employee transferred the foreign assignment allowance from the bank accounts held in India to the nostro accounts to top it up to the Travel Currency Card (TCC), which the assessee can use only abroad, but not in India, and it is a foreign currency denominated account. All the assessees have offered such portion of the salary which was received by them in India, but claimed the foreign assignment allowances received outside India as exempt income . 4. While processing the returns of income filed by all these assessees, the respective lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) accordingly dismissed the appeals preferred by various assessees. learned CIT(A) further held that insofar as the ITA No. 366/Hyd/2022 in the case of Tadimarri Prasanth Reddy is concerned, this person did not pay any tax in UAE and, therefore, if the foreign assignment allowance to treat as non-taxable in India, it amounts to double non-taxation, which is impermissible under law. 6. Assessees are, therefore, aggrieved and filed these appeals contending that it is incorrect to say that the foreign assignment allowance for the services rendered outside India and received outside India to be taxed in India. The assessees are being non-residents would not be liable to tax under the Act as the foreign assignment allowance was not received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on received by the assessee, this conclusively proves that the situs of employment is in India. According to him, merely because the assessee were directed to perform duties on foreign soil for a temporary period of time, it does not take away the right of the Revenue to collect tax on such amount, which was accrued/received by the assessees in India. According to him, the reasoning given by the learned Assessing Officer to come to the conclusion that all through this period, the situs of employment is in India is impeccable and does not require any interference. 9. Apart from this, he submitted that insofar as the ITA No. 366/Hyd/2022 in the case of Tadimarri Prasanth Reddy, this person did not pay any tax in UAE and, therefore, if the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decisions relied upon by the assessees, we are of the considered opinion that this issue is no longer res integra and all the aspects raised by the Revenue are elaborately and exhaustively dealt with by co-ordinate Benches of this Tribunal in the cases of Bodhisattva Chattopadhyay vs. CIT (supra), Sri Ranjit Kumar Vuppu vs. ITO (supra), DCIT vs. Sudipta Maity (supra), Sri Srinivas Mahesh Laxman vs. ITO (supra) and Shri Venkata Rama Rao vs. ITO (supra). 12. While reaching the conclusion that such an amount of foreign assignment allowance received for the services rendered outside India by way of TCC abroad is not taxable in India, reliance was placed by the co-ordinate Benches of the Tribunal on the decisions of CIT vs. Avtar Singh Wadhwa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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