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2017 (1) TMI 1816 - AT - Income TaxIncome taxable in India - bonus payments Pertaining to services rendered in China - tax paid in a Contracting State - methods of elimination of Double taxation u/a 23 - assessee held dual employment one with the original employer at the home country and another with the economic employer at the host entity and accordingly divided the salary compensation in two parts - AO disallowed a portion of the bonus attributing it as compensation for exercising his employment in the home country - DR submitted that the assessee not entitled for benefit of under article 15(1) since the assessee is a non resident and as per Article 23 of the DTAA between India and China allows exemption only to a resident of India - HELD THAT:- As decided in Shri Swaminathan Ravichandran [2016 (8) TMI 1498 - ITAT CHENNAI] in view of the specific condition under Article 23 of the India- China DTAA, the assessee is not eligible to claim relief under article 15(1) since the assessee is non-resident and as per Article 23 of DTAA between India and China allows exemption only to a resident Indian. Under the above facts and circumstances, the assessee is not eligible to claim exemption under section 5(2) of the Income Tax Act . Thus we are inclined to hold that the assessee is not entitled for exemption under Article 15(1) of the Double Taxation Avoidance Agreement (DTAA) between India and China - Ground raised by the assessee is dismissed.
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