Venkatesh Venkatasubramanian, CHENNAI V. ITO International Taxation 2(2), CHENNAI

ITA 2742/CHNY/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5229 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 14-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SAGADEVAN
• Keywords: Salary income; Double taxation relief; Revised return

Judgement Text

, / SMC , IN THE INCOME TAX APPELLATE TRIBUNAL C / SMC BENCH: CHENNAI , , ! | BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER ./ ITA NO.2742/CHNY/2017 /ASSESSMENT YEAR: 2014-15 SHRI VENKATESH VENKATASUBRAMANIAN, FLAT C, SRI LINGAM PARK 26, KAVARAI STREET, ARCOT ROAD, VADAPALANI, CHENNAI-600 026. [PAN: AEBPV 8622 C] VS. THE INCOME TAX OFFICER, INTERNATIONAL TAXATION 2(2), CHENNAI. ( & /APPELLANT) ( '(& /RESPONDENT) & ) / APPELLANT BY : MR.B. VENKATESAN, AUTHORIZED REPRESENTATIVE '(& ) /RESPONDENT BY : MR.B.SAGADEVAN, JCIT ) /DATE OF HEARING : 19.04.2018 ) / DATE OF PRONOUNCEMENT : 19.04.2018 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : ITA NO.2742/CHNY/2017 IS AN APPEAL FILED BY THE AS SESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-1 6, CHENNAI, IN ITA NO.71/CIT(A)-16/2014-15 DATED 01.08.2017 FOR THE AY 2014-15. 2. SHRI B.SAGADEVAN, JCIT REPRESENTED ON BEHALF OF THE REVENUE AND SHRI B. VENKATESWAN, AUTHORIZED REPRESENTATIVE, REPRESENTED ON BEHALF OF THE ASSESSEE. ITA NO.2742/CHNY/2017 :- 2 -: 3. IT WAS SUBMITTED BY THE LD.AR THAT THE ASSESSEE IS AN INDIVIDUAL WHO IS WORKING WITH M/S.ORACLE FINANCIAL SERVICES SOFTW ARE LTD., (IN SHORT M/S.OFSSL). THE ASSESSEE HAD BEEN DEPUTED TO EGY PT ON AN ASSIGNMENT. THE ASSESSEE HAD RECEIVED SALARY OF RS .26,86,152/- IN RESPECT OF HIS ASSIGNMENT IN EGYPT. IT WAS A SUBMI SSION THAT THE EMPLOYER COMPANY HAD DEPOSITED EGP 44,855.44 (EGYPTIAN CURRE NCY) IN RESPECT OF THE TAX LIABILITY OF THE ASSESSEE IN EGYPT. THE CE RTIFICATE ISSUED BY THE CFO OF M/S.OFSSL WAS SHOWN AT PAGE NOS.5 & 6 OF THE PAPER BOOK. THE CERTIFICATE ISSUED BY M/S.OFSSL CONFIRMING THE PAYM ENT OF TAXES IN THE NAME OF THE ASSESSEE WAS AT PAGE NO.7 OF THE PAPER BOOK. IT WAS A FURTHER SUBMISSION THAT FORM NO.16 ISSUED TO THE AS SESSEE WAS AT PAGE NO.442 & 443 OF THE PAPER BOOK WHICH SHOWED THE TOT AL AMOUNT CREDITED TO THE ASSESSEE TO BE RS.33,73,590/- AND THE TDS AT RS.8,67,340/-. IT WAS A SUBMISSION THAT THE ASSESSEE HAD ORIGINALLY F ILED HIS RETURN OF INCOME DISCLOSING A TOTAL INCOME OF RS.29,60,100/- AND SUBSEQUENTLY, REVISED RETURN WAS FILED BY DISCLOSING THE INCOME O F RS.3,47,750/- AFTER CLAIMING EXEMPTION. THE ASSESSMENT CAME TO BE COMP LETED U/S.143(3), WHEREIN, THE INCOME OF THE ASSESSEE FROM THE SALARY HAS BEEN ADOPTED AT RS.30,81,147/- AS PER FORM-26AS. HOWEVER, THE CRED IT OF THE TAX PAID BY THE ASSESSEE AS DISCLOSED IN THE FORM NO.16 WAS NOT GRANTED TO THE ASSESSEE. IT WAS A SUBMISSION THAT THE SAME WAS DE NIED ON THE GROUND THAT THE PROOF TO SHOW THAT THE INCOME OFFERED IN E GYPT ALONG WITH RECONCILIATION HAD NOT BEEN PRODUCED IN THE COURSE OF THE ASSESSMENT. IT WAS A SUBMISSION THAT THE ASSESSEE IS A SALARIED EM PLOYEE. FORM NO.16 ITA NO.2742/CHNY/2017 :- 3 -: AS ISSUED BY THE EMPLOYER DISCLOSES THE TDS, ONCE T DS HAS BEEN MADE ON THE SALARY, THEN IN VIEW OF THE PROVISIONS OF SEC.1 99(1), THE TDS HAVING BEEN SHOWN TO HAVE BEEN PAID THE TAX CANNOT BE RECO VERED FROM THE ASSESSEE ANY FURTHER. IT WAS A FURTHER SUBMISSION THAT THE ASSESSEES EMPLOYER M/S.OFSSL HAVING ALSO ISSUED THE CERTIFICA TE OF THE TAXES HAVING BEEN PAID IN EGYPT, THE ASSESSEE WOULD BE UNABLE TO PRODUCE ANY FURTHER EVIDENCES. 4. IN REPLY, THE LD.DR VEHEMENTLY SUPPORTED THE ORD ER OF THE AO & THE LD.CIT(A). IT WAS A SUBMISSION THAT THE EVIDENCES TO SHOW THAT THE TAX IN THE CASE OF THE ASSESSEE HAD BEEN PAID IN EGYPT NOR THE COPY OF THE EGYPTIAN TAX RETURNS HAD BEEN PRODUCED BEFORE THE A O. IT WAS A SUBMISSION THAT THE ORDER OF THE LD.CIT(A) & THE AO WAS LIABLE TO BE SUSTAINED. 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. 6. A PERUSAL OF THE EVIDENCES IN THE FORM OF THE CE RTIFICATE ISSUED BY THE M/S.OFSSL CLEARLY SHOWS THAT THE ASSESSEES NAM E, THE AMOUNT OF TAXES PAID IN THE EGYPT ON BEHALF OF THE ASSESSEE I S ALSO SPECIFICALLY DISCLOSED. FURTHER, THE EMPLOYER OF THE ASSESSEE H AD DEDUCTED THE TDS ON THE SALARY PAID TO THE ASSESSEE AS IS EVIDENT FR OM THE FORM NO.16 FILED. THE FORM NO.16 ALSO DISCLOSES THAT THE TAX DEDUCTED , HAVE BEEN DEPOSITED TO THE GOVERNMENT ACCOUNT. NOW, ONCE THERE IS AN E VIDENCE IN THE FORM ITA NO.2742/CHNY/2017 :- 4 -: NO.16 HAVING BEEN FILED DISCLOSING THE SALARY PAID TO THE ASSESSEE AND THE TDS HAVING BEEN DONE AND THE TDS HAVING BEEN DEPOSI TED WITH THE GOVERNMENT, NO FURTHER LIABILITY CAN BE LEVIED ON T HE ASSESSEE IN RESPECT OF THE SALARY INCOME. IF AT ALL, THE AO DISPUTES THE PAYMENT OF TAXES IN EGYPT, THEN IT WOULD BE VERY MUCH OPEN TO THE AO TO HAVE THE SAME VERIFIED WITH THE EMPLOYER COMPANY, WHICH ADMITTEDL Y HAVE ALSO NOT BEEN DONE. THIS BEING SO, I AM OF THE VIEW THAT THE ASS ESSEE HAS PRODUCED ADEQUATE EVIDENCE TO PROVE HIS CLAIM OF THE PAYMENT OF THE TAXES IN EGYPT IN SO FAR AS THE CERTIFICATES HAVE BEEN ISSUED TO T HE ASSESSEE AS AN EMPLOYEE BY HIS EMPLOYER M/S.OFSSL AND CONSEQUENTLY , THE ASSESSEE IS ENTITLED TO THE CLAIM OF EXEMPTION UNDER ARTICLE 16 (1) OF THE DTAA. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON APRIL 19, 2 018, AT CHENNAI. SD/- ( ) (GEORGE MATHAN) /JUDICIAL MEMBER /CHENNAI, 1 /DATED: APRIL 19, 2018. TLN ) '23 43 /COPY TO: 1. & /APPELLANT 4. 5 /CIT 2. '(& /RESPONDENT 5. 3 ' /DR 3. 5 ( ) /CIT(A) 6. /GF ITA NO.2742/CHNY/2017 :- 5 -: