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2023 (3) TMI 151 - ITAT HYDERABADIncome deemed to accrue or arise in India - salary received by the assessee in India for the services rendered in USA - overriding effect of section 90 of the Act - INDO-UK DTAA - doubt taxable in India under the provisions of section 5(2)(a) - scope of ‘resident of contracting state’ - Whether article 16 of the DTAA would prevail over the 5(2)(a) of the Act ? - HELD THAT:- Respectfully following the decision of the Hon’ble AAR in British Gas India (P) Ltd., In re [2006 (11) TMI 139 - AUTHORITY FOR ADVANCE RULINGS] we hold that though the provision under section 5(2)(a) of the Act fastens tax liability on the assessee, but, because of the overriding effect of section 90 of the Act, article 16 of the DTAA would prevail over the 5(2)(a) of the Act and consequently, the salary received by the assessee in India for the services rendered in USA are not liable to tax in India. Consequently, we direct the learned Assessing Officer to delete the addition made. Assessee appeal allowed.
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