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2024 (4) TMI 16 - AT - Income TaxRectification u/s 154 - taxation of salary income earned in USA - global income for tax in India - debatable issue or not? - Scope of beneficial provisions of Article 4(2) of India — USA Treaty - income received outside India from J.P. Morgna, USA - assessee submitted that the issue raised by the AO is a debatable issue which cannot be rectified - HELD THAT:- AO has rectified the order passed u/s 143(3) and added salary income received in USA from J.P. Morgan and the assessee has claimed relief in his computation of income. The assessee also claimed foreign tax credit without offering global income. The assessee reiterated the submission made before the lower authorities and he also relied on the various judgments noted supra. We note that the case law relied by the assessee will not support the arguments since here there is factual position that in Indian Income-tax return i.e ITR 2, Schedule FSI, which is placed at page No.15, the assessee has not offered the salary received from JP Morgan, USA and he has offered under the head ‘other sources of income’ of Rs. 12,64,665/- and has claimed tax paid outside India of Rs. 4,15,267/- and he also accepted that he is a resident/ordinary resident of India as per sec. 5(1)(c) of the Act and he is liable to tax in India on his global income, which was not shown in the Income-tax return filed by the assessee in India, therefore, there is factual mistake done by the assessee himself and, therefore, it is not a debatable issue. Accordingly AO has correctly invoked sec. 154 of the Act and rectified the order passed us/ 143(3) of the Act. Assessee has claimed relief under Article 16 of the Indo- USA DTAA (Treaty) r.w.s 90 of the Act on the salary received and the CIT(A) has accepted the arguments put forth before him and CIT(A) has given direction to the AO noted Supra. We also direct the AO to follow the direction of the CIT(A) and to pass OGE (Order Giving Effect) within 6 months from the receipt of this order considering the eligibility of the assessee as per DTAA provisions. The assessee is directed to file necessary documents for support of his case. Accordingly, this issue is partly allowed for statistical purposes.
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