Case Law Details
Shri Sudipta Maity Vs DCIT(IT) (ITAT Kolkata)
Hon’ble Bombay High Court in the case of CIT vs Avtar Singh Wadhwan reported in 247 ITR 260 (Bom) had held that in the case of a non-resident, when services are rendered outside India , the accrual of income thereon happens outside India and hence the same cannot be brought to tax in India as per section 5(2) of the Act. As stated above, we find that the assessee was able to get control over the funds in his TCC for the first time only in Switzerland and not in India and first point of receipt also happens only in Switzerland. Hence it could be safely concluded that both accrual and receipt of funds happens outside India thereby making the said receipt to stay outside the ambit of taxability u/s 5(2) of the Act.
FULL TEXT OF THE ITAT JUDGMENT
1. This appeal by the Revenue in I.T.A. No. 428/Kol/2017 arises out of the order of the Learned Commissioner of Income Tax(Appeals)-22, Kolkata [in short the ld CIT(A)] in Appeal No. 27/CIT(A)-22/Kol/13-14/16-17 dated 28.12.2016 against the order passed by the DCIT(IT), Circle-2(1), Kolkata [ in short the ld AO] under section 143(3) of the Income Tax Act, 1961 (in short “the Act”) dated 28.03.2016 for the Assessment Year 2013-14.
This appeal by the Revenue in I.T.A. No. 416/Kol/2017 arises out of the order of the Learned Commissioner of Income Tax(Appeals)-22, Kolkata [in short the ld CIT(A)] in Appeal No. 43/CIT(A)-22/Kol/13-14/16-17 dated 21.12.2016 against the order passed by the ACIT(IT), Circle-1(1), Kolkata [ in short the ld AO] under section 143(3) of the Income Tax Act, 1961 (in short “the Act”) dated 28.03.2016 for the Assessment Year 2013-14.
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