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2021 (2) TMI 1351 - ITAT HYDERABADIncome Taxable in India - Income deemed to accrue or arise in India - foreign allowances received for services performed in the Netherlands - assessee had admittedly worked as an employee of M/s IBM India Pvt. Ltd.as deputed in lieu of service performed outside India which in turn led to the amount in issue received as foreign allowance(s) - HELD THAT:- Revenue’s case in line with lower authorities action is that sec. 5(2) comes into play the moment impugned sum has been credited or received in India and any deviation thereof shall render the statutory provisions itself as redundant. We find no merit in Revenue’s foregoing stand. Various judicial precedents in CIT vs. Avtar Singh Wadhwan [2000 (11) TMI 116 - BOMBAY HIGH COURT]; DIT vs. Prahlad V Rao[2010 (11) TMI 803 - KARNATAKA HIGH COURT] and Utanka Roy [2016 (12) TMI 876 - CALCUTTA HIGH COURT] hold that such an income derived by a non- resident for performing service activities outside India, the accrual of income thereon happens outside India could not be brought to tax in India as per s.5(2) of the Act. We thus delete the impugned addition for this precise reason alone. Appeal of assessee allowed.
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