Income earned abroad can’t be taxed, if the same is not chargeable to tax under the general provisions of the I-T Act

In a recent ruling Mumbai Income Tax Appellate Tribunal (ITAT) [2010- T11-41-ITAT-MUM-INTL] in the case of J Ray Mc Dermott Eastern Hemisphere Ltd. (Taxpayer) held that receipts pertaining to transportation and installation contract executed by the Taxpayer outside India cannot be taxed under the special provisions, which provide for taxation of certain income of a non-resident on presumptive basis, if the income is not chargeable to tax under the general provisions of the Income Tax Act, 1961. Background and facts of the case The Taxpayer, a company tax resident of Mauritius, was engaged in t...