Case Law Details
Debarghya Chattopadhaya Vs DCIT (ITAT Kolkata)
Introduction: The case of Debarghya Chattopadhaya vs DCIT before the Kolkata ITAT delves into the eligibility of a taxpayer for Double Taxation Avoidance Agreement (DTAA) benefits. In this instance, the taxpayer possessed a tax residency certificate from the United Kingdom and offered taxes on income earned there. The ITAT ruled in favor of the taxpayer’s entitlement to treaty benefits under Section 90 of the Income Tax Act.
Detailed Analysis: The appellant, a non-resident Indian, received salary income from IBM India Pvt. Ltd. while working in the United Kingdom. Despite not filing a tax residency certificate before the Assessing Officer (AO), the taxpayer argued for relief under DTAA. The AO denied the claim due to the absence of the tax residency certificate.
However, during the appeal process, the taxpayer submitted the tax residency certificate issued by HM Revenue and Customs, UK. The AO, in a remand report, acknowledged the validity of the certificate and accepted the taxpayer’s claim for DTAA benefit. Despite this, the Commissioner of Income Tax (Appeals) (CIT(A)) failed to allow the ground of appeal.
Upon review, the Kolkata ITAT recognized the taxpayer’s possession of the tax residency certificate for the relevant period. Since the taxpayer had already offered taxes in the United Kingdom for the fiscal year in question, the ITAT concluded that the taxpayer deserved DTAA benefits under Section 90 of the Act. Consequently, the ITAT set aside the CIT(A)’s findings and deleted the addition to the taxpayer’s income.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
