2013 (1) TMI 508

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..... pter II of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). The said Sections are part of the charging Sections. Section 5 (2) of the Act provides, amongst others, that the total income of any previous year of a person, who is a non-resident, includes all income from whatever source derived which is received or is 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. At the same time, Section 9(1)(ii) of the Act provides that income which falls under the head "salaries", if it is earned in India shall be regarded as income earned in India. The explanation appended thereto provides that for removal of doubts, it is dec .....

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..... either the nationality of those 13 people or the duration of their stay in India, when they worked and were remunerated with the remunerations, which were sought to be included as taxable in India. 3. Having regard to the fact, principally, that those 13 Danish nationals received salaries for services rendered in India, it was held by the Assessing Officer and by the Commissioner of Appeals that those salaries are taxable in India. The matter, then, travelled to the Tribunal at the instance of the assessee. Tribunal noticed the treaties on Double Taxation Avoidance Agreements between the Government of Denmark and the Government of India, whereby it has been specifically provided that the remuneration derived by a resident of either of tho .....

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..... to the residence of the assessee. It is being contended that the assessee is not a resident of Denmark, instead it is a resident of UK. That is of hardly any importance, inasmuch as, treaty requires employer to be a non-resident of India and not necessarily a resident of Denmark. The other dispute seems to be, whether the assessee has a permanent establishment or fixed base in India? Even if the assessee has a permanent establishment or fixed base in India, the same is of no consequence, inasmuch as, it is to be shown and established that the remuneration is borne by that establishment or fixed base, which the assessee has in India. Tribunal has noted that the remuneration was not borne by any permanent establishment or a fixed base, which .....

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