9911796707
TMI Blog2024 (9) TMI 725X X X X Extracts X X X X X X X X Extracts X X X X ..... eneral ledger account of assessee maintained by the company wherein the amounts credited as eligible salary on regular basis along with amounts withdrawn from time to time for his personal use/investments. The assessee has proved that the amount has been earned from the company at outside India which has been supported by the proof of employment at UAE, salary certificate, ledger account of salary drawn duly certified by the company - no interference needed for the decision made by the Ld. CIT(A) and hence, we dismiss the appeal of the Revenue. - Shri Mahavir Singh, Vice President And Shri S.R. Raghunatha, Accountant Member For the Assessee : Shri N. Arjun Raj, Advocate For the Revenue : Shri N. Sanjay Gandhi, JCIT ORDER PER S.R. RAGHUNATHA, A.M : This appeal by the Revenue is arising out of the order of the Commissioner of Income Tax (Appeals)-16, Chennai [hereinafter CIT(A)]in ITA No.12/CIT(A)-16/2021-22, dated 19.01.2023. The assessment was framed by the Income Tax Officer, International Taxation, Ward-2(1), Chennai for the Assessment Year 2017-18 u/s. 143(3) of the Income Tax Act, 1961 (hereinafter the Act ), vide order dated 13.04.2021. 2. The Revenue has raised following gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation sought for from FT and TR is not forthcoming. Then time limit of passing order u/s. 143(3) of the Act was getting barred by limitation to complete the assessment proceedings, the AO considering the assessee s reply concluded the assessment as under : 2.1.3 In continuation of the proceedings, a notice u/s 142(1) of the IT Act, dated 05-02-2021 and a show cause notice dated 08-03-2021 was issued to the assessee. In response to the above notices, the assessee's authorised representative filed letter on 08-03-2021 and 18-03-2021 along with the Statement from ADIB Bank, UAE and stated that apart from salary income, the assessee has received incentive, bonus etc. The assessee's reply is reproduced here under. assessee was working in UAE for the past 25 years. Part of the monthly salary credited as UAE currency in ADIB Bank, UAE. Apart from salary the assessee used to withdraw cash from his employer company current account towards incentive, Bonus, and extra time remuneration which form total salary of Rs. 2,97,95,005/- As per the bank statement the amounts of salary credits appearing in the bank statement are listed as below: S. No. Date Description Credit in UAE Dhirams 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s out to Rs. 15,66,060/-. Therefore, the assessee's claim of short term capital loss of Rs. 1,77,00,000/- does not arise and accordingly is not allowed. (Short Term Capital Loss : Rs. 15,66,060/-) 4. Aggrieved by the order of the AO, the assessee preferred an appeal before the Ld.CIT(A) by raising the ground that the AO has erred in disallowing the salary income earned in UAE, which has been claimed as exempt income. After considering the details, documents and other information furnished by the assessee, the Ld.CIT(A) noted that the assessee was a non-resident in India during the assessment year under consideration and allowed the appeal of the assessee holding as under: 5. After taking into account the above mentioned sequence of events, and all the material evidence available on assessment records, the grounds of appeal raised by the appellant as grounds of appeal nos. 1 and 2 are adjudicated as under: The First Ground of appeal raises a factual question, which is, what is the situs of the receipt of Rs. 2,97,95,005/-. As demonstrated by documentary evidence, the situs was definetly UAE. The appellant did not receive any amount in India. The appellant has earned the same in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in view of the above factual and legal matrix, the Assessing Officer's action in treating Rs. 2,66,37,600/- as taxable salary income is found to be wrong. The Assessing Officer is directed to delete the said addition of Rs. 2,66,37,600/- Thus, grounds of appeal no.1 and 2 are allowed in full. 5. Aggrieved by the order of the ld.CIT(A), the Revenue is in appeal before us. 6. The Ld. Sr.DR stated that the Ld.CIT(A) has erred in observing the assessee s salary income of Rs. 2.97 crores earned in UAE, even though the same is not credited to his bank accounts and out of which Rs. 2.66 crores has been drawn from his employer company s current account towards incentive, bonus and extra time remuneration. The Ld. Sr.DR submitted the written submission as detailed below: During the assessment proceedings, the claim of exempt income of Rs. 2,66,37,601/- was disallowed for the reason that assessee failed to furnish direct evidence for receipt of salary income (Rs. 2,97,95,005 - 31,57,404 salary received in bank account). 2. During the first appellate proceedings, the Ld.CIT(A) called for Remand report. The Remand Report was furnished by the Assessing Officer on 08.09.2022. After receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Assessee for the FY 2016-17 Page 88 to 92. Further, the above details had been sent to the AO and obtained the remand report and thereafter, reply of the assessee to the remand report has been obtained by the ld. CIT(A) and concluded the proceedings by allowing the appeal of the assessee. 9. In the facts of the case, we note that the assessee was a Non- Resident employed at UAE and earned salary income from AL Kayed Workshop. During the relevant assessment year, the assessee had stayed in India only for 20 days. The assessee has earned salary at UAE and in support of that salary certificate issued by the employer along with the eligible emoluments of salary for the period from 01.04.2016 to 31.07.2017 (A.Y 2017-18) was furnished before the Ld. CIT(A), which has been accepted by the Ld. CIT(A). Further it is also noted that the assessee had submitted general ledger account of assessee maintained by the company wherein the amounts credited as eligible salary on regular basis along with amounts withdrawn from time to time for his personal use/investments. In the facts and circumstances of the case and by going through the documents, the assessee has proved that the amount of Rs. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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