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2012 (8) TMI 202 - HC - Income TaxRent free accommodation provided to the Assessee, an employee of Suzuki Motors Corporation (Japan)- collaboration agreement between M/s. Suzuki Motors, Japan and M/s. Maruti Udhyog Ltd., India - Held that:- In terms of Section 5(1)(c) r.w.s. 6(6) the assessee was a person “not ordinarily resident” in India and that the salary earned in Japan for employment under Suzuki Motors Corporattion cannot be assessed in his hands in the assessment made in India - since the assessee did not fall within the purview of Income Tax Act, 1961 there was therefore no question of bringing any amount paid to him by his foreign employer to taxation. Tax the salary of the assessee earned outside India - Reliance on the provisions of Article 15 of India Japan DTAA holding that the provisions of DTAA override the provisions of taxing statute - Held that:- The provisions of Section 90(2) of the Income Tax Act, 1961 are clear that the provisions of the said Act shall be applicable to the extent they are more beneficial to the assessee to whom the relevant DTAA applies - Since in the present case, the provisions of Section 6(6) r.w.s.(5)(1)(c) and Section 9(1)(i) were beneficial to the assessee the same should have been preferred by the authorities over DTAA and the income earned by the assessee outside India during the year under consideration ought to have been held to be not taxable in India as per the said provisions. It was confirmed by Suzuki Motors Corporation (Japan) that the amount of daily allowance received by it from Maruti Udhyog Ltd., India in terms of license agreement was not paid by it to any individuals including the assessee. It is pertinent to note here that nothing has been brought on record either by the Assessing Officer or by the learned CIT (A) to dispute this position - therefore, the income of the assessee earned in India alone was taxable in his hands in India and the income earned by him outside India was not taxable in India as rightly claimed - in favour of assessee.
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