Facts
a) The
assessee was transferred from Indian company to its American sister concern to act
as a lead software engineer
b) He
left India on 30th May of relevant financial year in connection with
his US employment. However, for internal facilitation, his salary for relevant
period was paid by Indian company in India.
c) Assessee
filed his return claiming status of a non-resident and claimed his salary income
as exempt from tax in view of Article 16(1) of the DTAA between India and USA.
d) Assessing
Officer (AO) held that since salary was received in India, the same would be
taxable in India irrespective of his residential status.
e) CIT(A)
confirmed the order of the AO. Aggrieved by the order of CIT(A), assessee filed
the instant appeal before the tribunal.
The
tribunal held in favour of assessee as under-
1) The
fact that assessee was non-resident in India in the relevant previous year was
not disputed as same was accepted by AO. As far as applicability of Article
16(1) of India-USA DTAA is concerned, same depends on the country where
services are rendered which were undisputedly in the USA in the instant case.
2) Therefore,
the application of Article 16(1) could not be denied to assessee merely because
the salary was received in India in view of the undisputed fact that no service
was rendered by assessee in India.
3) Hence,
salary received by non-resident for rendering services in USA couldn’t be
taxable in India in terms of Article 16 of India-US DTAA even if salary was
received in India- [2016] 67 taxmann.com 240 (Jaipur - Trib.)
Roman"'> Assessing
Officer (AO) held that since salary was received in India, the same would be
taxable in India irrespective of his residential status.
e) CIT(A)
confirmed the order of the AO. Aggrieved by the order of CIT(A), assessee filed
the instant appeal before the tribunal.
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