Case Law Details
Smt. Sumana Bandyopadhyay & Anr. Vs DDIT – International Taxation (Calcutta High Court)
Income of the assessee constituted earning outside India while the assessee was an NRI and mere receipt of the said sum in the assessee’s NRE account would not subject it to tax under the 1961 Act.
Salary income earned by the NRI assessee and credited by the employer directly to the NRO account maintained by the assessee in India is not taxable.
FULL TEXT OF THE HIGH COURT ORDER / JUDGEMENT
1. The appellants are legal heirs of the original assessee, who passed away intestate on 10th April 2013. The assessee was a marine engineer and the subject of dispute of this appeal is taxability of a substantial portion of his income earned during the previous year relevant to the assessment year 2010-11. The total sum involved is Rs.14,79,598/-, and this was earned by the appellant as salary from two concerns, Great Offshore Limited and Bibby Ship Management (Singapore) Pte. Ltd. The appellant in his return had declared total income of Rs.3,95,099/-. The aforesaid sum was added to his disclosed income in scrutiny assessment. Admitted position is that during that year, the assessee had the status of non-resident under Section 6 of the Income Tax Act, 1961. The assessee had received the said sum from his two employers in a Non-Resident (external) bank account, commonly referred to NRE account.
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