Case Laws
Acts
Notifications
Circulars
Classification
Forms
Manuals
Articles
News
D. Forum
Highlights
Notes
🚨 Important Update for Our Users
We are transitioning to our new and improved portal - www.taxtmi.com - for a better experience.
⚠️ This portal will be fully migrated on 31-July-2025 at 23:59:59
After this date, all services will be available exclusively on our new platform.
If you encounter any issues or problems while using the new portal,
please let us know
via our feedback form
, with specific details, so we can address them promptly.
Home
2023 (8) TMI 1493 - AT - Income TaxTaxability of income in India - foreign assignment allowance received by the assessee for the services rendered outside India - HELD THAT - While reaching the conclusion that such an amount of foreign assignment allowance received for the services rendered outside India by way of TCC abroad is not taxable in India reliance was placed on the decisions of Avtar Singh Wadhwan 2000 (11) TMI 116 - BOMBAY HIGH COURT Prahlad Vijendra Rao 2010 (11) TMI 803 - KARNATAKA HIGH COURT and Utanka Roy 2016 (12) TMI 876 - CALCUTTA HIGH COURT In the case of Bodhisattva Chattopadhyay 2019 (11) TMI 1031 - ITAT KOLKATA the facts are identical. In that case also the assessee was found to be a nonresident 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 contention of the Revenue was that the impugned foreign assignment allowance did not suffer any tax in the host country and therefore it was a case of double non-taxation which is impermissible under law. Tribunal reached a conclusion that 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. 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. Assessee appeal allowed.
|