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2014 (3) TMI 18 - ITAT AGRAAddition made - Salary accrue and received in India - Whether the authorities have erred in making and upholding the addition on account of salary considering it as accrued and received in India – Held that:- If an assessee acquires a right to receive an income, the income is said to have accrued to him even though it may be received later, on it's being ascertained, but this proposition will be relevant only when assessee gets a right to receive the income - the assessee gets his right to receive salary income when he renders the services and not when he simply receives the appointment letter. The assessee had to be regarded as having received the income outside India and the pension had been remitted or transmitted to the place where the assessee was living, as a matter of convenience and that would not constitute receipt of pension in India by the assessee, falling within s. 5(1)(a) of the Act - once an income is received outside India, whether in reality or on constructive basis, the mere fact that it has been remitted to India would not be decisive on the question as to income is to be treated as having been received in India - The connotation of an income having been received and an amount having being received are qualitatively different - The salary amount is received in India but the salary income is received outside India - It is elementary that an income cannot be taxed more than once but if, at each point of receipt, the income is to be taxed, it may have to be taxed on multiple occasions – thus, in a situation in which the salary has accrued outside India, thereafter, by an arrangement, salary is remitted to India and made available to the employee, it will not constitute receipt of salary in India by the assessee so as to trigger taxability under section 5(2)(a) of the Act – thus, the addition made is liable to be set aside – Decided in favour of Assessee. Addition on account of bank interest - Whether the authorities below have erred in making and upholding the addition on account of bank interest earned and credited in NRE account – Held that:- The HSBC has categorically indicated that the account is an NRE account - When this was pointed out to the Revenue, he did not have much to say except for placing his rather dutiful reliance on the orders of the authorities below – it is a specific mandate of Section 10(4)(ii) which exempts interest on NRE accounts from income tax – thus, the addition made is liable to be set aside – Decided in favour of Assessee.
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