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2023 (7) TMI 27 - AT - Income TaxIncome Taxable in India - Income deemed to accrue or arise in India - foreign assignment allowance received by the assessee for the services rendered outside India - assessees received salary which includes the component of the foreign allowance received outside India - assessees are the employees of IBM India Private Limited, which is an Indian company who sent the assessees on long term assignment to various countries - HELD THAT:- In the case of Bodhisattva Chattopadhyay [2019 (11) TMI 1031 - ITAT KOLKATA] the facts are identical wherein assessee was found to be a non-resident and the assessee received the foreign assignment allowance which the employer transferred from the employer’s bank account held in Bangalore to Axis Bank nostro account for top up to the TCC and also that the employer affected TDS on the entire remuneration that was paid to the assessee both in India and abroad - the foreign assignment allowance that was topped up to the TCC of the assessee, though it was transferred by the employer from their bank account in India to the Axis bank’s nostro accounts, is not taxable in India. The Tribunal repelled contentions of the Revenue as to the double non-taxation of this amount, because it was not subjected to any tax in the host country, stating that such a fact is immaterial to decide the issue, because the question effectively is whether such foreign assignment allowance is taxable in India or not? For such question, the subjection of the said amount to tax in the host country is totally irrelevant. Since the issue involved in these appeals has consistently been dealt with by the Tribunal and also by the higher fora, we respectfully follow the view taken in all the cases. We accordingly accept the contentions of the assessees and reject the plea taken by the Revenue.
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