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TMI Blog2024 (11) TMI 865X X X X Extracts X X X X X X X X Extracts X X X X ..... the India-UK DTAA it is exempt income. A similar view, has also been taken in the case of Nanthakumar Murugesan [ 2024 (6) TMI 815 - ITAT CHENNAI] . We find that identical fact exists before us in the present appeals. The proportionate salary for services rendered in India has already been offered to tax in India whereas the balance salary has already been offered to tax in UK. The assessee has not claimed any foreign tax credit in any of the jurisdiction. The UK tax has been paid. Therefore, ld. CIT(A) has rightly deleted the addition - Decided in favour of assessee. - Hon ble Shri Manoj Kumar Aggarwal, Accountant Member And Hon ble Shri Manu Kumar Giri, Judicial Member For the Appellant : Ms. Preeti Goel (Virtual) For the Respondent : Shri. Ashwin D. Gowda, IRS, Addl.CIT. ORDER PER MANU KUMAR GIRI (JUDICIAL MEMBER) This appeal by the assessee is arising out of the order No.ITBA/APL/ S/250/2023-24/1062556751 (1) dated 13.03.2024 of the Commissioner of Income Tax (Appeals)-16, Chennai. The assessment was framed by the Income Tax Officer, International Taxation, Ward, Coimbatore for the assessment year 2020-21 u/s. 143(3) r.w.s 144C of the Income Tax Act, 1961 (hereinafter the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re. India, as a sovereign has the right to collect the tax from the same. Undoubtedly as per section 5 of Income Tax Act, 1961, this is the fundamental premise of all these salary cases, where the appellants have consequent to their assignment, exercise employment in other countries, on behalf of the employer in India. That is the reason why, the employers deduct tax at source, as a matter of abundant caution. However, when the income is offered to tax in the other contracting tax, i.e. where the services were rendered and the other contracting tax established its right to taxation by way of residence, section 90 of Income Tax Act, 1961 comes to play its role and the treaty overrides the provisions of the Act. The appellant gets entitlement to beneficial tax regime as per section 90. Therefore, I find that the appellant is eligible to claim exemption on Rs. 23,26,204/- and I direct the Assessing Officer, to delete the said addition in his hands. In view of the above finding, Grounds of Appeal No. 1,4,5 and 6 are allowed . 04. We have heard the both parties, perused the materials available on record, paper book and gone through orders of the authorities below. Brief facts are that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TP)A 51/Chny/2018 dated 11.08.2023. The Co-ordinate Bench order held as under:- 4. We find that similar issue, on similar facts, has been decided by us in our decision titled as Shri Kanagaraj Shanmugam vs. ITO (ITA No.2936/Chny/2018 dated 07.09.2022) as under: - Our findings and Adjudication 5. From the fact it emerges that the assessee has stayed in India for 63 days during this year and his status, as per law, is non-resident. The assessee has worked in India for 21 days and offered proportionate salary to that extent to tax. For remaining period, the work has been performed in though the salary has been received in India from existing employer. It is also a fact on record that this salary, for work performed in, has been offered to tax in which is evident from Tax Returns filed in. The assessee submit the as per Article 16(1) of DTAA, this income would be taxable in only. Alternatively, the assessee relies on the provisions of Sec.15 read with Sec.5(2) and Sec.9(1)(ii) which provides for taxability of salary on accrual basis and not on receipt basis. However, Ld. CIT(A) has held that the assessee would not be eligible for the benefit of DTAA since DTAA relief is to be given by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed up for 6046. This is in view of the fact that OFSSL has paid provisional payment of 9062 to revenue authorities since the employer has undertaken to meet the income tax liability arising from employee s earnings in. Accordingly, the assessee has claimed refund of 3016. On the basis of the above, it could be seen that separate tax payment has been made by OFSSL to revenue authorities to discharge the tax liability of the assessee in that country. 8. The assessee has also placed on record Tax Residency Certificate (Page nos. 192-193 of paper book). As per this certificate, the assessee has claimed relief for foreign earning not taxable in for 7952. The same shall be considered by Ld. AO while computing the quantum of income taxable in India as directed by us in preceding para-7. 9.The appeal stands partly allowed in terms of our above order. In the above decision, we have held that salary income as accrued to the assessee for work performed in a foreign jurisdiction would not be taxable in India whereas the salary received for work performed in India would be taxable in India. The benefit of DTAA would be available to the assessee as per the decision of coordinate bench of Chenna ..... X X X X Extracts X X X X X X X X Extracts X X X X
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