SIVANATH BABU , MADURAI V. ITO ( INTERNATIONAL TAXATION ), COIMBATORE

ITA 1076/CHNY/2022

AI Insights

The case revolves around Shri Sivanath Babu, an employee of M/s Ramco Cements Ltd., who was deputed to Sri Lanka and classified as a non-resident for tax purposes. Despite his non-resident status and the applicability of the Double Taxation Avoidance Agreement (DTAA) with Sri Lanka, TDS was erroneously deducted by his Indian employer. The assessee filed a 'Nil' return in India for the assessment year 2020-21, claiming a refund of the deducted TDS amounting to Rs.6.83 Lacs. The Centralized Processing Center (CPC) denied this refund, treating the assessee as a resident. The first appellate authority upheld this decision, leading to the current appeal before the Income Tax Appellate Tribunal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134231 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 17-05-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 11-12-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Double taxation relief; TDS

Judgement Text

आयकर अपीलीय अिधकरण “बी” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय ी महावीर िसंह, उपा ! एवं माननीय ी मनोज कुमार अ&वाल ,लेखा सद) के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.1076/Chn y/2022 (िनधा*रण वष* / As sessment Year: 2020-21) Shri Sivanath Babu 218, 28/5 Jey Nagar 1 st Street Theni Main Road, Viratti Pathu, Madurai-625 016. बनाम / Vs. ITO (International Taxation), Coimbatore. थायीलेखासं./जीआइआरसं./PAN/GIR No. C NFPS - 0965-J (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Shri J.Prabhakar (FCA) -Ld. AR थ कीओरसे/Respondent by : Shri D.Hema Bhupal (JCIT)-Ld.DR सुनवाईकीतारीख/Date of Hearing : 18-05-2023 घोषणाकीतारीख /Date of Pronouncement : 18-05-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. In the captioned appeal, the grievance of the assessee is denial of TDS credit of Rs.6.83 Lacs. The Ld. AR submitted that impugned order overlook the fact that the assessee was non-resident and offered its income in Sri Lanka as per applicable DTAA. The Indian employer i.e., M/s Ramco Cements wrongly deducted TDS which should be refunded to the assessee. The Ld. AR also drew attention to first appellate order in case of similarly placed assessee employed by the same employer. The 2 ITA No.1076/Chny/2022 order has been placed on page no. 104 of the paper-book. The Ld. Sr. DR submitted that the stated facts would require verification. 2. We find that the assessee declared ‘Nil’ return of income and claimed refund of Rs.6.83 Lacs. The CPC denied the same while processing the return u/s 143(1). The status of the assessee was taken as resident. The assessee is employed with M/s Ramco Cements Ltd. During June, 2018, he was deputed to Sri Lanka Branch office of its employer and worked on full time basis there. The assessee is stated to have stayed in Sri Lanka for 319 days and visited India only for 47 days. The assessee filed Income tax Return in Sri Lanka and paid taxes therein. The Ld. CIT(A) dismissed the appeal on the ground that credit of TDS would be available only when the income is assessed. Aggrieved, the assessee is in further appeal before us. 3. Quite clearly, the impugned order has gone completely wrong on facts. Therefore, we set aside the impugned order and direct Ld. AO to verify the claim of the assessee and re-adjudicate the issue of refund as claimed by the assessee. 4. The appeal stand allowed for statistical purposes. Order pronounced in open court on 18 th May, 2023. Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा45 / VICE PRESIDENT लेखा सद7 / ACCOUNTANT MEMBER चे9ई Chennai; िदनांक Dated : 18-05-2023 DS आदेशकीAितिलिपअ&ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant2. थ /Respondent 3. आयकरआयुA/CIT 4. िवभागीय ितिनिध/DR 5. गाडFफाईल/GF