Kapil Gupta Vs ITO (ITAT Delhi)
Material Facts
The appeal arose from an order of the JCIT(A) dated 23.01.2026 against an assessment order passed under Section 154 of the Income-tax Act, 1961 for Assessment Year 2020-21.
The sole issue before the Tribunal was whether salary received by the assessee in Australia for services rendered in Australia was taxable in India.
The assessee filed the return of income on 29.09.2020 declaring salary of ₹14,16,115 received from an Australian employer, M/s. Modis Consulting Private Limited.
During the relevant year, the assessee migrated from India to Australia for employment. The services were rendered in Australia to the Australian employer. The salary was subjected to tax in Australia and tax of ₹3,40,428 was deducted at source there.
The assessee relied upon Article 15 of the India-Australia Double Taxation Avoidance Agreement (DTAA) and sought exclusion of the Australian salary from taxation in India. However, the salary had inadvertently been offered to tax in India. The assessee also filed Form 67 on 19.02.2022 claiming foreign tax credit (FTC) for taxes paid in Australia.
The assessee thereafter sought rectification for exclusion of the salary from taxable income in India. The Centralised Processing Centre (CPC) rejected the rectification application.
