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2015 (4) TMI 133 - ITAT HYDERABADTaxation rights for the salary earned for work done in the USA - India USA DTAA - Held that:- Following the decision of the Apex Court in the case of P.V.A.L. Kulandagan Chettiar (2004 (5) TMI 8 - SUPREME Court), the interpretation of the phrase 'may be' in Article 16(1) is applied in the impugned assessment year so as to exempt from the Indian taxable income of the assessee, his salary income which has been offered to tax in USA. We therefore allow this ground of the assessee on this aspect. - Decided in favour of assessee. Levying to tax in India the salary income which accrued and arose outside India and was also received by the Appellant outside India - Held that:- From a plain reading of Section 5(2), it is clear that the per diem paid in the USA is not income received or deemed to be received in India; neither does it accrues or arises in India as it is towards working in the USA. As held by in the case of Avtar Singh Wadhwan [2000 (11) TMI 116 - BOMBAY High Court] the situs of accrual is the situs of services rendered which in the instant case is clearly in the USA and the amounts are also received in the USA. Hence, it cannot form part of income taxable in India as per Section 5. Mutually exclusive to this argument, we can apply the same rationale of the earlier ground (i.e, interpretation of Article 16(1)) can be applied too applying the 'exemption regime' for the impugned year and hence even under this view the per diem cannot be brought to tax in India. - Decided in favour of assessee.
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