Salary Exemption to Non-Resident for services rendered outside India

1. Brief facts of the case are that the assessee is an individual and derives his income from salary and other sources. The assessee claiming himself as non-resident filed his return declaring total income at Rs. Nil. Under scrutiny, notices u/s. 143(2) and 142(1) of the Act were issued. In response to which, according to AO, none appeared in the assessment proceeding. Thereby the AO determined the income of the assessee at Rs. 15,07,862/- vide his order date 27-03-2014 passed u/s. 144/143(3) of the Act. While doing so, the AO observed that the assessee has claimed exemption of salary received from International Mining Services Limited Norway in foreign currency. The assessee claimed as discussed above as non resident status. The AO while examining the material on record found that there was no such evidence to show that the assessee is a non resident. Accordingly, exemption as sought by the assessee was denied by the AO and added the same to his total income.

2. The CIT-A by relying on the decision of Hon’ble Third Member in the case of Capt. A.L Fernandes Vs. ITO reported in (2002) 81 ITD 203 (Mum.) held that the salary received in India for rendering of services by the appellant outside India is chargeable to tax in India as his income. Accordingly, he confirmed the action of the AO in doing so.