Jha Jena Vs International Tax (ITAT Mumbai)
The appeal was filed by the assessee against the order dated 26.07.2024 passed by the Commissioner of Income Tax (Appeals)-57, Mumbai, for Assessment Year 2013–14. The assessee challenged the assessment order wherein the Assessing Officer (AO) computed total income at ₹53,07,765 as against the returned income of ₹6,89,690. The primary dispute related to the addition of ₹45,08,074 towards salary received during an international assignment and denial of exemption claimed under section 9(1)(ii) of the Income Tax Act.
The assessee, an individual, filed her return declaring income of ₹6,89,690. The case was selected for scrutiny, and due to non-response to notices, the AO passed an ex parte order. The AO added ₹45,08,074 as salary income based on Form 26AS and disallowed a deduction of ₹1,10,000 claimed under Chapter VIA.
Before the CIT(A), the assessee submitted that she had been deputed to Cairo, Egypt from 01.08.2012 for a period of 24 months and was a non-resident for the relevant year. It was argued that salary earned for services rendered in Egypt was not taxable in India under section 9(1)(ii). The assessee also submitted additional evidence in support of deductions under Chapter VIA. The CIT(A) allowed the deduction under Chapter VIA but upheld the addition of salary income, holding that the assessee remained an employee of an Indian company, received salary in India, and therefore the income was taxable in India under section 5(2). The CIT(A) also directed the AO to grant TDS credit.
