9911796707
TMI Blog2017 (8) TMI 1730X X X X Extracts X X X X X X X X Extracts X X X X ..... HELD THAT:- CBDT has issued a Circular No. 13/2017, dated 11.04.2017 wherein CBDT has clarified that the salary accrued to a non-resident seafarer for services rendered outside India on a foreign ship shall not be included in the total income merely because the salary has been credited in the NRE account maintained with an Indian Bank by the seafarer. It is well settled that the circular issued by the CBDT are binding on the Revenue authority. This position has been confirmed by the Hon'ble Apex Court in the case of Commissioner of Customs v. Indian Oil Corpn. Ltd. [ 2004 (2) TMI 66 - SUPREME COURT] as held when a Circular issued by the Board remains in operation then the revenue is bound by it and cannot be allowed to plead that it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MI Crewing Services during the A.Y. : 2012-13. On perusal of 'Continuous Discharge Certificate' it was found by the AO that assessee was on ship 'M/T Torm Agnes' of Singapore from 10.05.2011 to 11.11.2011. Assessee vide his submission dated 08.12.2014, 23.02.2015 and 03.03.2015 stated that he was outside India for 187 days on employment and qualifies to be a 'Non-Resident'. Assessee in his support produced the copy of passport and 'Continuous Discharge Certificate' from his employer. However, the AO held that as the assessee is a non-resident, once it is determined that the income is of the nature of salary and it has become due to the assessee, the conditions laid down in Section 15(a) of the Act get fulfill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d excessive. 4. That the order of the Ld. CIT(A) upholding the order of the Assessing Officer is arbitrary, excessive and unjustified and bad in law. Although, in this appeal the assessee has raised the multiple grounds of appeal, but at the time of hearing the main grievance of the assessee has been confined to the issue whether the remuneration received by the assessee in the sum of Rs. 36,69,150/- which was directly remitted from foreign to the NRE account of assessee by the foreign company could be brought to tax in India based on the facts and circumstances of the case. 2.1 The brief facts qua the issue are that the Assessee filed his return of income, showing Income from other sources of Rs. 30,628/-, chapter VI-A deduction of Rs. 1,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals). The assessee argued before the CIT(A) that he was a non-resident and no income was taxable in India as entire service was rendered outside India. It was argued that assessee was under employment of a foreign company and services were rendered outside India and his foreign employer does not have any permanent establishment in India. For the services rendered by the assessee outside India the entire payment of salary was made by the foreign company in US$ and remittance was made to the NRE account of the assessee in India. The assessee claimed that the meaning of the word 'received in India' within the meaning of section 5(2)(a) of the Act should be interpreted only in the context of income received in Indian currency in In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Hon'ble IT AT are against the assessee. But the ld. Counsel pointed out before us that neither the Assessing Officer nor the ld. CIT(A) was correct in making the addition because they did not consider the CBDT Circular No. 13/2017, which is applicable to them. The Ld. Counsel for the assessee has submitted before us that the CBDT Circular No. 13/2017 wherein it has been clarified that the salary accrued to a non-resident seafarer for services rendered outside India on a foreign ship shall not be included in the total income merely because the said salary has been credited in the NRE account maintained with an Indian bank by the seafarer. The relevant para of the CBDT Circular No. 13/2017 reads as under: The matter has been examined in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Hon'ble Apex Court in the case of Commissioner of Customs v. Indian Oil Corporation Ltd. reported in 267 ITR 272 (SC) wherein their Lordships examined the earlier decisions of the Apex Court with regard to binding nature of the Circulars and laid down that when a Circular issued by the Board remains in operation then the revenue is bound by it and cannot be allowed to plead that it is not valid or that it is contrary to the terms of the Statute. Accordingly, the grounds raised by the assessee are allowed. The ld. Counsel pointed out that CBDT Circular are binding on the Income-tax Authorities. That is, when a Circular issued by the Board remains in operation then the revenue is bound by it and cannot be allowed to plead that it is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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