ITO v. Sunil Chitranjan Muncif

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The Tax Publishers2013 TaxPub(DT) 2140 (Ahd-Trib) : (2013) 053 (II) ITCL 0491 : (2013) 058 SOT 0356 Income Tax Act, 1961 --Double taxation relief--Agreement between India and UK Income from salary--Assessee was a NRI and salary income received by him in India for employment exercised in UK had been offered by him for taxation in UK in pursuance of article 16 of DTAA with UK. Assessing officer taxed the same in India. Commissioner (Appeals), however, held that salary received by assessee was as such not taxable in India. *Held:* Rightly so. Salary received by assessee in India for services rendered in UK was not taxable in India. Income Tax Act, 1961 Section 90 Income Tax Act, 1961 Section 5 DTAA between India & UK Article 16 In the ITAT, Ahmedabad B Bench D. K. Tyagi, J. M. & T. R. Meena, A. M. ITO v. Sunil Chitranjan Muncif IT Appeal No. 2346 (Ahd.) of 2012 A.Y. 2006-07 17 May, 2013 Appellant by : Y. P. Verma Respondent by : R.V. Desal ORDER *D. K. Tyagi, J. M.* This is the revenues appeal against the order of learned Commissioner (Appeal), Gandhinagar dated 31-7-2012. 2. The revenue has taken six grounds of appeal all relating to the action of Learned Commissioner (Appeal) in holding that the salary received by the assessee shall not be taxable in India as employment is exercised in U.K. and the same has been offered for tax in U.K. in pursuance to DTAA. 3. The brief facts of the case are that assessee is employed by M/s Cap Gemini India and he was sent to deputation to England by the Indian employer in 1999. The assessing officer dealt the issue in this appeal as under : '3. The assessee is a NRI and working at London on behalf of the company situated in India. The assessee has also declared income from capital gain & income from other sources. The assessee has also declared loss under the head Income House Property being S.O. property. 4. The assessee in the note to statement of income mentioned that, the assessee is a NRI and working at London on behalf of the company situated in India. The assessee has showed the total Taxable income of Rs 35,03,399. However, tax payable worked out to NIL and has claimed refund of Rs. 10,93,763. In this regard, to verify the genuineness of claim, a letter to the assessee was issued on 3-12-08 which is reproduced as under : SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2013 TaxPub(DT) 2140 (Ahd-Trib) : (2013) 053 (II) ITCL 0491 : (2013) 058 SOT 0356

Income Tax Act, 1961

--Double taxation relief--Agreement between India and UK Income from salary--Assessee was a NRI and salary income received by him in India for employment exercised in UK had been offered by him for taxation in UK in pursuance of article 16 of DTAA with UK. Assessing officer taxed the same in India. Commissioner (Appeals), however, held that salary received by assessee was as such not taxable in India. Held: Rightly so. Salary received by assessee in India for services rendered in UK was not taxable in India.

Income Tax Act, 1961 Section 90

Income Tax Act, 1961 Section 5

DTAA between India & UK Article 16

In the ITAT, Ahmedabad B Bench

D. K. Tyagi, J. M. & T. R. Meena, A. M.

ITO v. Sunil Chitranjan Muncif

IT Appeal No. 2346 (Ahd.) of 2012

A.Y. 2006-07

17 May, 2013

Appellant by : Y. P. Verma

Respondent by : R.V. Desal

ORDER

D. K. Tyagi, J. M.

This is the revenues appeal against the order of learned Commissioner (Appeal), Gandhinagar dated 31-7-2012.

2. The revenue has taken six grounds of appeal all relating to the action of Learned Commissioner (Appeal) in holding that the salary received by the assessee shall not be taxable in India as employment is exercised in U.K. and the same has been offered for tax in U.K. in pursuance to DTAA.

3. The brief facts of the case are that assessee is employed by M/s Cap Gemini India and he was sent to deputation to England by the Indian employer in 1999. The assessing officer dealt the issue in this appeal as under :

'3. The assessee is a NRI and working at London on behalf of the company situated in India. The assessee has also declared income from capital gain & income from other sources. The assessee has also declared loss under the head Income House Property being S.O. property.

4. The assessee in the note to statement of income mentioned that, the assessee is a NRI and working at London on behalf of the company situated in India. The assessee has showed the total Taxable income of Rs 35,03,399. However, tax payable worked out to NIL and has claimed refund of Rs. 10,93,763. In this regard, to verify the genuineness of claim, a letter to the assessee was issued on 3-12-08 which is reproduced as under :