INCOME TAX OFFICER(INTERNATIONAL TAXATION), WARD-1(2), CHENNAI, GREAMS ROAD, CHENNAI V. JEETH ANAND, CHENNAI

ITA 1422/CHNY/2024

AI Insights

The case involves an appeal by the Income Tax Officer (International Taxation), Chennai against Jeeth Anand, a non-resident employee of M/s. FIS Global Business Solutions India Pvt. Ltd., who received salary for services rendered in Thailand. The Assessing Officer added the salary income to the assessee's taxable income in India, claiming it was received in India. However, the CIT(A) deleted this addition, noting that the income was already taxed in Thailand under the DTAA between India and Thailand. The Tribunal supported the CIT(A)'s decision, referencing similar cases and the provisions of the DTAA.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107039 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 12-09-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 13-05-2024
• Other Referred Cases: Shri Ramesh Kumar AE vs. ITO, Nanthakumar Murugesan v. ITO
• Laws Referred To: Income-tax Act, 1961, DTAA between India and Thailand
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P. KRISHNA KUMAR
• Assessee Lawyers: J. PRANAY GANDHI; LEKH MEHTA; VIRTUAL
• Keywords: Salary income; Double taxation relief
• Section: 144C

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0019ी एबी टी. वक\u001e, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1422/Chny/2024 िनधा8रण वष8 /Assessment Year: 2020-21 The Income Tax Officer (International Taxation), Ward-1(2), Chennai. Vs. Jeeth Anand, No.5/11, Home Finders Estate, Thiruvalluvar, Salai Ramapuram, Chennai. [PAN: ADQPJ 9238A] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीलाथ\u001e की ओर से/ Assessee by : Shri J. Pranay Gandhi, CA & Shri Lekh Mehta, CA (Virtual) EFथ\u001e की ओर से /Revenue by : Shri P. Krishna Kumar, JCIT सुनवाई की तारीख/Date of Hearing : 12.09.2024 घोषणा की तारीख /Date of Pronouncement : 30.10.2024 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the Revenue for Assessment Year (AY) 2020-21 arises out of the order of Learned Commissioner of Income Tax, Appeal, CIT(A), Chennai-16 [hereinafter “CIT(A)”] dated 05.03.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 143 r.w.s 144C of the Income-tax Act,1961 (hereinafter “the Act”) on 28.04.2022. ITA No.1422/Chny/2024 :- 2 -: 2. The effective ground of appeal in this appeal of Revenue is against deleting the addition of salary income of Rs. 46,66,022/- made by the A.O in the assessment order. 3. The assessee is an employee of M/s. FIS Global Business Solutions India Pvt. Ltd. and has been Non-Resident during the year. The assessee has received salary of Rs. 49,85,854/- for the services rendered in Thailand and has claimed it non taxable in India in the return of income. However, the A.O has made the addition of salaried income as salary has been received in India. On appeal, the Ld. CIT(A) has deleted the addition as the income has already offered in Thailand and as per DTAA between India and Thailand the taxing right has been given to Thailand under Article 15(1) of India Thailand DTAA. 4. The Ld. Departmental Representative (DR) supporting the order of A.O has argued that the salary has been received in India and therefore, is taxable in India. 5. The Ld. Authorized Representative (A.R) of the assessee, on the other hand supported the order of Ld. CIT(A) and argued that the assessee is Non-Resident and the salary income has been offered in ITA No.1422/Chny/2024 :- 3 -: Thailand and as per Article 15(1) of DTAA between India and Thailand ,the income is taxable in Thailand and therefore, the Ld. CIT(A) has correctly deleted the addition. The Ld. AR has also relied on the order of Co-ordinate Bench of this Tribunal in the case of Shri Ramesh Kumar AE vs. ITO in IT(TP)A No.51/Chny/2018 dated 11.08.2023 and other cases where on similar facts , the salary income has been held to be not taxable in India on the basis of DTAA. 6. We have heard the rival submissions, and perused the materials available on record. The assessee is a Non-Resident and has received salary of Rs. 49,85,854/- in India for the services rendered in Thailand. The Ld. CIT(A) has held that the income has been offered in Thailand and as per DTAA between India and Thailand, the salary income is taxable in Thailand as articles of DTAA overrides the provisions of the Act which has been the basis for the A.O to charge the income. The Co-ordinate Bench in the case of Nanthakumar Murugesan v. ITO [2024] 165 taxmann.com 304 (Chennai-Trib.) on similar facts has held that where assessee, NRI, an employee of a company in India, was seconded on overseas assignment to China by his employer and he received salary for services rendered in China, since said income as offered to tax in China and assessee had not claimed any foreign tax ITA No.1422/Chny/2024 :- 4 -: credit in any of jurisdiction, same would be exempt in India in light of DTAA. In view of the above, we find no infirmity in the order of Ld. CIT(A) and therefore, the appeal filed by the Revenue is dismissed. 7. In the result, the appeal filed by the Revenue is dismissed. Order pronounced on 30th October, 2024. Sd/- Sd/- (एबी टी. वक\u001e) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 30th October, 2024. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. \t थ\b/Respondent 3. आयकर आयु\u0010/CIT, Chennai 4. िवभागीय \tितिनिध/DR 5. गाड\u0019 फाईल/GF "