Case Law Details
DCIT Vs Chukkapalli Mallikarjuna (ITAT Visakhapatnam)
Assessee has relied on the circular of the CBDT N0. 13/2017, dated 11/04/2017 and submitted that the income earned by the assessee outside India cannot be taxed in India.
From the above circular of CBDT, it is very clear that income earned by the seafarer outside India credited in the NRE account cannot be taxed in India. In the present case, the salary income earned by the assessee has been credited to NRO account maintained with SBI, Dugiralla Branch, Guntur, in our opinion, whether the amount is credited to NRE/NRO doesn’t make any difference. From the above circular, the only point for consideration is the assessee should be non-resident seafarer received a salary for his services rendered outside India, the same cannot be taxed in India. In this case, it is a not disputed fact that the assessee is a non-resident seafarer, he received salary income for the services rendered abroad. Therefore, the Assessing Officer ought not to have taxed the income earned by the assessee outside India as per the above CBDT circular.
FULL TEXT OF THE ITAT JUDGMENT
This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals)-1, Guntur, dated 29/06/2018 for the Assessment Year 2015-16.
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