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2022 (10) TMI 486 - AT - Income TaxIncome accrued/taxable in India - Tax Resident - Taxability of investment of unexplained income in properties in India - unexplained investment of the assessee made from the undisclosed sources - investment made in India by the assessee, who is non-resident Indian settled in the United Arab Emirates (UAE) - HELD THAT:- We find that similar issue arose for consideration before Co-ordinate Bench of the Tribunal in assessee’s own case in ITO v/s Rajeev Suresh Ghai [2021 (12) TMI 697 - ITAT MUMBAI] assessee before us is a tax resident of the United Arab Emirates and is thus entitled to the benefits of the Indo UAE tax treaty. When the rights to tax the income in question. under the applicable tax treaty provisions, are allocated to the residence jurisdiction, it is wholly immaterial whether or not the source jurisdiction has the right to tax that income, and, in any event, India is not even a source jurisdiction for the income in question as no economic activities have been carried out in India- it is at best the jurisdiction in which earnings are invested. That cannot anyway have any bearing on the taxation of income. In our considered view, therefore, since, under the terms of the Indo UAE tax treaty, the right to tax the amounts in question, even if that be of income nature in the hands of the present assessee, does not belong to India, all these issues being raised by the learned counsel are wholly academic as of now. In the present case the assessee has also filed the Tax Domicile Certificate for the relevant Financial Year issued by the concerned authority in Ministry of Finance, UAE, in support of its claim. The learned D.R. could not show us in any reason to deviate from the aforesaid decision and no change in facts and law was alleged in the relevant assessment year. Thus, respectfully following aforesaid judicial precedent in assessee’s own case, we find no infirmity in the impugned order passed by the learned CIT(A). As a result, grounds raised by the Revenue are dismissed.
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