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2020 (5) TMI 77 - AT - Income TaxIncome accrued in India - salary received by the assessee from Australia entity - India-Australia DTAA - taxability of salary received for the period 31.08.2014 to 31.03.2015 in India in respect of services rendered by him in Australia - HELD THAT:- From the reading of aforesaid provisions of Section 15(a) of the Act, it could be concluded that the salary is always taxable on accrual basis. Even as per Provisions of Section 9(1)(ii) which states that income deemed to accrue or arise in India, salary income could be deemed to accrue or arise in India, only if it is earned in India in respect of services rendered in India. Provisions of Section 9(1)(ii) of the Act read with Explanation to clause(a) is very clear in this regard. We find the assessee had claimed exemption under Article 15(1) of India-Australia DTAA for claiming the salary income received for the period 31.08.2014 to 31.03.2015 as not taxable in India. In the instant case as narrated above, there is absolutely no dispute that assessee herein is a resident of Australia and non-resident of India during the year under consideration. Hence, assessee would be entitled to India-Australia Treaty wherein as per Article-15, salary income of resident of Australia is taxable only in Australia. Accordingly we hold that the salary earned by the assessee in respect of services rendered in Australia for the period 31.08.2014 to 31.03.2015 is taxable only in Australia (this is also duly offered to tax by the assessee in Australia as evident from Australian Tax return filed by the assessee) and not in India. - Decided in favour of assessee.
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