Sanjay Ajit Vs ITO (ITAT Chennai)
ITAT Chennai held that salary received for international assignment which is subjected to tax in UK could not be taxed in India. Accordingly, claim of the assessee allowed.
Facts- The assessee being non-resident individual filed return of income declaring income of Rs.2295/- and claiming refund of Rs.10.08 Lacs. The assessee earned salary of Rs.39.47 Lacs from his employer M/s Oracle Financial Services Software Ltd. (OFSSL) and claimed salary to be exempt to the extent of Rs.39.41 Lacs under Article 16(1) of India-UK DTAA.
AO held an opinion that India being the source state and considering the fact that no tax has been paid by the assessee to UK Tax Authorities, the salary income would be taxable in India. Finally, considering Article 16 of India-UK Tax Treaty as well as the provisions of Sec.5(2), Ld. AO rejected the claim of the assessee and brought to tax entire salary of Rs.39.47 Lacs while computing the income of the assessee.
CIT(A) upheld the same on the ground that this expenditure was claimed by OFSSL and as per Tax Residency Certificate (TRC), no remittance tax was paid by the assessee in UK. Being aggrieved, the present appeal is filed.
