Intersting one- Avoiding double taxation overseas

Assessee tried to take the benefit of the AAR of British Gas (I) Pvt Ltd….but seem to have failed..!!!! ! Income Tax – Assessee posted abroad for more than 182 days on deputation – DTAA – Income not taxed by the contracting state – Return filed and tax paid in India – Later contended that since he was non-resident during the FY, his income was not taxable in India – Since his income was not brought to tax in the contracting state, such income is taxable in India as the purpose of such bilateral treaties is to avoid double taxation and not to exempt income from taxation altogether – Assessee’s appeal dismissed 

BEFORE THE AUTHORITY FOR ADVANCE RULINGS

(INCOME TAX) NEW DELHI APPLICATION NO. AAR 741 OF 2007

P.V. REDDI (CHAIRMAN) AND A. SINHA (MEMBER)

Dated : August 24, 2007

RULING Per : P.V. REDDI (CHAIRMAN) :

1. The facts giving rise to this application are as follows:

1.1. The applicant filed a return of income for the assessment year 2006-07 with the ADIT(International Taxation), Chennai, disclosing the income of Rs. 6,06,390/- and paid tax of Rs.1,49,855/ – including the tax withheld. Infosys Technology Ltd., Bangalore, with whom the applicant was employed withheld an amount of Rs.89,639/- towards income-tax by way of deduction from the salary of Rs.5,08,615/ -. The applicant states that during the relevant financial year 2005-06 he was employed with HCL Ltd., New Delhi, from 1.4.2005 to 10.5.2005 and with Infosys Technology, Bangalore from 16.5.2005 to 31.3.2006. He states that he was deputed on official duty to Norway by his employer Infosys Technology Ltd., and he worked there for more than 182 days and he is therefore a non-resident for tax purposes.