9911796707
TMI Blog2024 (2) TMI 1371X X X X Extracts X X X X X X X X Extracts X X X X ..... tted by the Assessee erroneously noted that there is a failure on the part of Assessee to provide agreement between Irish and Indian entity. Evidently, the ld. DRP failed to appreciate certificate / letter of reimbursement issued by BA PLC, Ireland substantiates the assessee's submission that during the impugned Assessment Year, the assessee was employed with BA PLC. Ireland and was paid salary in India merely for administrative convenience. Salary income of the Assessee was not exigible in India under Article 15 of the DTAA - AO was not correct in not granting relief under Article 15 of the DTAA and disregarding that income is accrued where employment is exercised. As per the Article 15 of the DTAA between India and Netherlands, the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come cannot be held to be taxable in India and hence, the addition made by the AO on this issue is hereby directed to be deleted. - Decided in favour of assessee. - SH. KUL BHARAT, JUDICIAL MEMBER AND DR. B. R. R. KUMAR, ACCOUNTANT MEMBER For the Assessee : Sh. Vishal Kalra, Adv. Ms. Snigdha Gautam, Adv. For the Revenue : Sh. Vizay B. Vasanta, CIT-DR ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: This appeal has been filed by the assessee against the order dated 23.05.2023 passed by the AO u/s 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961. 2. Following grounds have been raised by the assessee: 1. That on the facts and circumstances of the case and in taw the AO has erred in completing the assessment of the Appellant at an income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the facts and circumstances of the case and in law, the AO erred in levying interest under Section 234B of the Act. 8. That on the facts and circumstances of the case and in law, the AO erred in initiating penalty proceedings under section 270A of the Act in respect of misreporting of income. 3. The assessee is an individual employed with British Airways PLC, a company incorporated under the laws of United Kingdom. The assessee was deputed on a long term-term assignment from April 01, 2019 to British Airways PLC, Ireland branch ( BA PLC, Ireland ). 4. During the year, the assessee rendered services outside India (i.e. in Ireland) and was a tax resident of Netherlands by virtue of the Tax Residency Certificate ( TRC ). Further, in the rele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ( DRP ), the ld. DRP vide its directions dated April 19, 2023, affirming the addition proposed by the Assessing Officer. 8. Based on directions issued by the ld. DRP, final assessment order was issued by AO on April 23, 2023 under section 14C(3) read with section 143(3) of the Act, assessing the total income of the assessee amounting to Rs.5,69,40,697/- after denying the exemption/relief claimed by the assessee under Article 15(1) of India - Ireland DTAA. 9. Aggrieved, the assessee filed appeal before the Tribunal. 10. Ground No. 2 to 5 relating to salary income earned by the assessee for services rendered in Ireland is not taxable in India as the assessee being non-resident and covered under Article 15(1) of India - Ireland DTAA. 11. Duri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvenience. Salary income of the Assessee was not exigible in India under Article 15 of the DTAA 14. The Assessing Officer was not correct in not granting relief under Article 15 of the DTAA and disregarding that income is accrued where employment is exercised. As per the Article 15 of the DTAA between India and Netherlands, the income earned by the person is exempt from tax if following conditions are satisfied: (1) If the person has not stayed for more than 183 days in India, and (2) If the employment is exercised outside India. 15. In the present case, both the conditions prescribed in the Article 15 are satisfied. The first condition has not been disputed by the Assessing Officer, whereas the second condition has been justified by variou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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