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TMI Blog2015 (2) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... ompleted at Rs. 82,83,860 by making the following additions: (i) Addition of Rs. 81,45,025 as income deemed to accrue or arise in India. (ii) Interest received from SBI of Rs. 98,835 3. As per the details available on the record, the assessee was working as Consultant cum Independent contractor to perform as Senior drilling Engineer or senior operations engineer at Nigeria (outside India) to an Indian company i.e., M/s. Ajapa Integrated Project Management Consultant Pvt. Ltd., Chennai. Even though, the services rendered outside the India, but the services were utilized for the Indian company. Moreover, the AO held that the assessee also received the amounts in Indian currency and also in India only. 4. The AO observed that, from a combi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tant Pvt. Ltd., paid the amounts towards fee for technical services and the services utilized by the Indian company in its business carried on by it in India. Irrespective of the place where the services were rendered and the amounts received, towards fee for technical services should be deemed to accrue or arise in India. 8. The AO held as follows: As per an amendment to Sec. 9 to the Finance Bill, 2010 states as under: "In order to remove any doubt about the legislative intent of the aforesaid source rule it is proposed to substitute the existing explanation with a new explanation to specifically state that the income of nonresident shall be deemed to accrue or arise in India under clause (v) or clause (vi) or clause (vii) of sub sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see was engaged to render independent consultant services in Nigeria. The assessee claimed that an amount of Rs. 81,45,025/- received towards consultancy service fee for service rendered in Nigeria was exempt u/s. 9(I)(vii)(b) of the I. T Act. However, the AO was of the view that though the services of the assessee were rendered outside India, the services were utilised for the Indian Company. The A. a also, mistakenly, concluded that the assessee received the impugned amount in India and also in Indian currency. The AO made addition of Rs. 81,45,025/-. The assessee submits herewith a copy of bank account maintained outside India showing credit of his earnings in dollars. (Annexure A). In this connection the assessee submits that consultan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . A copy of the said decision has also been filed before the Commissioner of Income Tax (Appeals) during the course of hearing on 12- 12-13. The assessee humbly submits that in the light of the ratio of the aforementioned cases, the Assessing Officer is not correct in bringing to tax the amount of Rs. 81,45,025/- in the hands of the Assessee. The assessee prays that the addition made by Assessing Officer may be directed to be deleted." 10. The CIT(A) observed that as per the agreement with M/s Ajapa Integrated Project Management Consultant Limited, Chennai, the appellant rendered consultant services outside India i.e. in Nigeria and received the amount of Rs. 81,45,025 and claimed exemption u/s 9(1)(vii)(b) of the Act. The CIT(A) further o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. US Dollars from Nigeria, which is clearly reflected in the Statement of Account for the period 1.4.2009 to 31.3.2010, submitted by the assessee. 13. The CIT(A) after carefully considering the decision of M/s. Ajapa Integrated Project Management Consultant Pvt. Ltd., Chennai (24 taxmann.com 16) (Chennai) held that the assessee entered into agreement to render consultancy services outside India i.e., Nigeria and received consultancy charges which is clearly exempt under exception in section 9(1)(vii)(b) of the Act. The CIT(A) also considered the decision in case of Mahindra Holidays & Resorts (38 taxmann.com 207) (Chennai) and stated that the decision relates to commission paid to non-residents for services rendered outside India and does ..... X X X X Extracts X X X X X X X X Extracts X X X X
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