TMI Blog2012 (5) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... Dated:- 24-4-2012 - MR. JUSTICE SANJIV KHANNA, MR. JUSTICE R.V. EASWAR, JJ. For Appellant: Mr. Deepak Chopra, sr. standing counsel with Mr. Harpreet Singh Ajmani, Adv. SANJIV KHANNA, J: (ORAL) 1. By order dated 22.9.2009, the following two substantial questions of law in this appeal which pertains to assessment year 2001-02 in the case of Anant Jain were admitted for hearing: - a) Whether ITAT was correct in law in deleting the addition of Rs.37,44,026/- made by the Assessing Officer treating the same as profit in lieu of salary under Section 17(3)(i) of the Act? b) Whether proviso to Section 5(1) would apply to the amount of Rs.37,44,026/- received by the assessee so as to exclude the same from the total income of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as received by the assessee as his profit in lieu of salary which was payable by the employer under the employer-employee relationship and therefore, taxable under Section 17(3)(ii) of the Income Tax Act, 1961 ( Act‟, for short). 6. The assessee succeeded before the CIT(Appeals). The assessee explained that he was an employee of Enron Corporation, USA from 1991 till November, 1999 and during this period he was a non-resident Indian. It was stated that Rs.37,44,026/- represented retirement benefits received from the previous employer on the termination of employment in November, 1999. This amount had accrued outside India for employment rendered outside India and was received outside India and taxed in USA. It was stated that this am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er appeal by the Revenue before the Tribunal, in the impugned order the following findings have been recorded: - 15. We have heard both the parties. The ld. CIT (Appeals) on the basis of certificate filed has recorded a finding that the receipt of the impugned amount was on account of part services rendered by the assessee to his previous foreign employer outside India. Under section 5 of the I.T. Act, the total income of any previous year of a person who is a resident includes all incomes from whatever source derived, which is received or deemed to be received in India in such year by or on behalf of such person; or accrues or arises or is deemed to accrue or arise to him in India during such year; or accrues or arises to him outside In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion was received towards retirement benefit/severance/vacation engagement from the erstwhile employer on termination of employment in November, 1999. The erstwhile employer was based in USA and services were rendered to the erstwhile employer in USA. In view of the aforesaid factual position, elucidated and accepted by both the CIT(Appeals) and the Tribunal, we do not think the said amount can be taxed in India, as the status of the respondent-assessee during the year in question was that of not ordinary resident . The said income did not accrue or arise in India. The tribunal has rightly held that in terms of Section 6 and Section 9(1) (ii) of the Act, the amount/income had not accrued/deemed to be accrued /paid in India The questions of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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