TMI Blog2017 (7) TMI 503X X X X Extracts X X X X X X X X Extracts X X X X ..... ew that the Assessing Officer was wrong in adding the aforesaid sum to the income chargeable to tax of the assessee for the relevant assessment year. We accordingly allow the appeal and answer the question framed by us in favour of the assessee. - GA 3745 of 2016, ITAT 374 of 2016 - - - Dated:- 13-7-2017 - Aniruddha Bose And Arindam Sinha, JJ. For the Appellants : Mr. J.P. Khaitan, Senior Advocate, Mr. R.S. Padjekar, Mr. R.K. Biswas, Mr. P. K. JhunJhunwalla, Mr. S. Rudra For the Respondent : Mr. Debashis Chowdhury, Advocate ORDER Aniruddha Bose, J. 1. The appellants are legal heirs of the original assessee, who passed away intestate on 10th April 2013. The assessee was a marine engineer and the subject of dispute o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of the case and in law, income by way of salary which became due and has accrued to the assessee, a non-resident, for services rendered outside India and which is not chargeable to tax in India on the due or accrual basis, can be said to be chargeable to tax on the receipt basis merely because the foreign employers, on the instructions of the assessee, have remitted a part of amount of salary to the assessee s NRE bank account in India? 4. This judgment is assailed before us by Mr. Khaitan, learned Senior Counsel appearing on behalf of the appellant. His submission is that income of the assessee constituted earning outside India while the assessee was an NRI and mere receipt of the said sum in the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f law there under with reference to Section 9(1)(Xii) in the said case it has also been held that the salary which is earned in India will alone be regarded as income arising in India and not otherwise. The principles laid down in the said case are squarely applicable to the facts of present case also. c) The criteria of applying the definition of Section 5(2)(b) would be such income which is earned in India for the services rendered in India and not otherwise. d) Under section 15 of Act even on accrual basis salary income is taxable i.e., it becomes taxable irrespective of the fact whether it is actually received or not only when services rendered in India it becomes taxable by implication. However, if services are rendered out ..... X X X X Extracts X X X X X X X X Extracts X X X X
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