Case Law Details
Amit Jain Vs ACIT (ITAT Delhi)
ITAT Delhi held that salary income not taxable in India both u/s. 9(1) as services are rendered outside India and also not taxable under Article 15(1) of India-Netherland DTAA as required conditions satisfied.
Facts- The assessee, an Indian National was deputed from 01.01.2014 to 31.12.2017 on a long term assignment to Akzo Nobel Decorative Coatings B.V. (Akzo Netherlands), a company incorporated under the laws of the Netherlands. During the year under consideration, the assessee rendered services outside India (i.e. Netherlands) and was a tax resident of Netherlands by virtue of domestic laws of Netherlands. The Tax Residency Certificate (TRC) received from Netherlands Tax Authorities was placed before the lower authorities. It is not in dispute that the services were rendered by the assessee only in the Netherlands during the year under consideration. However, the assessee was also sent on deputation to India on behalf of Akzo Netherlands. For administrative convenience, the assessee received salary in India from Akzo Nobel India in respect of the services rendered outside India to Akzo Netherlands. In order to ensure withholding tax compliance laid down u/s. 192 of the Act, Akzo Nobel India Ltd deducted tax at source on the salary paid in India and deposited with the Government. However, Akzo Nobel India was reimbursed in full by Akzo Netherlands for the salary paid in India.
Since TDS was done, in order to claim refund of the same, the assessee filed his return of income for the Asst Year 2018-19 u/s. 139(1) in the status of Non-Resident, claiming the salary received in India for services rendered outside India to be exempted from tax in India, in accordance with section 90 of the Income Tax Act read with Article 15(1) of the India-Netherlands DTAA.
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