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2010 (10) TMI 852 - DELHI HIGH COURTDisallowance under section 40(a)(iii) - non eduction of tds - amount of salaries paid in foreign currency to the employees - Indian and Netherlands DTAA - Held that:- The salary payment can be said to be earned in India only if the corresponding services are rendered in India. In other words, if the services are rendered outside India, for which salary has been paid, then the income cannot be said to accrue or arise in India. Further, since in the instant case services are rendered outside India in respect of which the employees received salary outside India, it cannot be said that the same accrue or arise in India - See CIT v. Avtar Singh Wadhawan [2000 (11) TMI 116 - BOMBAY High Court] wherein the assessee had worked outside the India he received salary outside India from an Indian employer namely Shipping Corporation of India & the Bombay High Court on these facts held that since the place where the services are rendered is relevant for determining chargeability of the tax, no tax would be payable on the salary received on the services rendered outside India. In favour of assessee.
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