9911796707
TMI Blog1988 (1) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... abroad. The return of income declaring total income of Rs. 83,240 was filed on 5-12-1980. The ITO passed an order u/s 143(3) read with sec. 144B after taking note of directions of IAC u/s 144B(4). It is necessary to mention here that although this is an appeal filed by the department, a copy of the directions of the IAC u/s 144B(4) has not been enclosed with the assessment order nor is the gist of the instructions given extracted in the order of assessment of the ITO. However, a copy of such directions was filed by the assessee's Representative. 2. From the papers filed before us, the following facts can be gathered. The assessee, Mr. B.C. Deshpande, is an individual deriving income from salary from M/s. Peico Electronics Electricals L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. from 11-9-1979. Effectively he was a direct employee of the foreign company and his income earned from such company was subjected to tax at Holland with reference to such employment. The source of salary receipts had changed. The CIT (A) further held that the assessee had also maintained accounts in respect of salary income. The relevant exercise books in which such accounts were maintained had been shown to the IAC u/s 144B proceedings. The IAC had not rejected the assessee's claim on the ground that books of account were not maintained but had done so on the ground that the decision cited by the assessee had not been accepted by the department. The CIT (A) also relied on the decision of the Andhra Pradesh High Court in Addl. CIT v. K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he salary income received from Philips (India) Ltd. or the Indian company was one source and the salary received from the parent company was another source. He then argued that full and complete details of accounts were maintained and a copy of cash book so maintained from month to month was filed before us. These accounts had not been rejected by the IAC nor had the IAC rejected the assessee's right to maintain the books of account. Shri Pardiwalla thereafter relied on the decision of Punjab Haryana High Court in Patiala Sales Corpn. (P.) Ltd.'s case in which the High Court held that the option for effecting the previous year for a separate source of income has been given by a statutory provision to the assessee and not the department an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om he received salary independently from 11-9-1979. From that date, the assessee was a full-time employee of the foreign company which was a different entity and a different employer and therefore the salary received from such employer was from a different source. The assessee was fully entitled to maintain separate accounts in respect of this source of income. This option was exercised by the assessee in terms of sec. 3(1)(b) and the Courts, as discussed earlier, have endorsed the assessee's right to exercise such option in respect of different sources of income, though they may be under the same head of income. We, therefore, do not find any reason to interfere with the order of CIT (A), which is confirmed and the departmental appeal dism ..... X X X X Extracts X X X X X X X X Extracts X X X X
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