Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 105 - AT - Income TaxIncome accrued in India - income assessable to tax at Singapore on the basis of accrual or remittance - AO brought to tax part of the receipt on the ground that the assessee has not furnished the proof of its remittance to the assessee in Singapore - India-Singapore DTAA - Held that:- It has never been the case of the AO or the CIT (A) that the assessee has not filed the evidence of offering the income to tax in Singapore. In fact, the AO has considered the fact that the offshore income of a Singapore entity is not taxable in Singapore unless and until it is remitted or received in Singapore by virtue of Article 24(1) of India-Singapore DTAA. Thus, the consequence of receipt in Singapore is that it is taxable in Singapore and that is the reason why the AO has accepted part of the remittance in respect of which the proof has been furnished during the assessment proceedings as exempt from tax in India. Since the assessee has filed proof of remittance of a part of balance of the freight charges, we are of the opinion that the assessee is entitled to exemption in respect of only the freight charges remitted to Singapore. In respect of USD in respect of which, there is no proof of remittance, it has to be brought to tax in India. We find that similar issue had arisen before the Hon'ble Gujarat High Court in the case of M.T. Maersk Mikage & 4 Petitioners vs. DIT (International Taxation) (2016 (9) TMI 19 - GUJARAT HIGH COURT). The AO is therefore, directed to tax only such part of the freight charges which have not been remitted to the assessee in Singapore. Assessee’s appeal is partly allowed.
|