TMI Blog2023 (11) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... THAT:- The assessee is employed in Nigeria is not disputed by the revenue. Since the salary is received by the assessee in NRE account in India, it cannot be considered as income in India, as services were rendered onshore by the assessee, the salary cannot be considered as accrued or deemed to accrue to the assessee in India and hence the provisions of section 5(2)(a) of the Act cannot be applied. From the bare reading of Section 9(1)(ii) salary shall be deemed to accrue or arise in India and shall be regarded as income earned in India, only when services are rendered in India. We find that there is merit in the argument of the Ld. AR wherein the CBDT Circular No. 13/2017 shall be applied to the assessee who is working on-shore and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee also claimed an amount of Rs. 1,14,43,118/- as exempt income. The return of income was summarily processed U/s. 143(1) of the Act. During the scrutiny proceedings, as per the information available on record, the Ld. AO observed that the assessee along with other three persons sold certain properties for a total consideration of Rs. 1,70,59,000/- as per the sale deeds whereas the SRO value of the property was Rs. 2,64,47,000/-. On verification of the original return of income filed by the assessee, the Ld. AO noticed that the assessee did not adopt the sale consideration as per the SRO value for the purpose of stamp duty and registration purpose and worked out the difference of Rs. 93,88,000/- and assessed the same in the hands ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the remuneration to the assessee was received by him in Nigeria but directly credited to his NRE account in India. Therefore, the Ld. DRP concluded that the Ld. AO is absolutely correct in invoking the provisions of section 5(2)(a) of the Act. Aggrieved by the directions of the Ld. DRP, the assessee is in appeal before us by raising the following grounds of appeal: 1. The order of the Ld. DRP-1, Bengaluru is contrary to the facts and also the law applicable to the facts of the case. 2. The Hon ble DRP is not justified in sustaining the addition of Rs. 1,14,43,118/- made by the Assessing Officer by rejecting the claim of the appellant that the salary received for services rendered in Nigeria is outside the scope of total income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee in the instant case. He therefore pleaded that the directions of the Ld. DRP be upheld. 4. We have heard the rival contentions and perused the material available on record and the orders of the Ld. Revenue Authorities. It is an undisputed fact that the assessee is employed in Nigeria as a Senior Drilling Engineer and deployed in on-shore block in different areas by mutual agreement. Admittedly, the assessee has requested his employer in Nigeria to credit his salary to the NRE account maintained in India as he is always engaged in on-shore operations. Further, as argued by the Ld. AR the salary has become due as per the provisions of section 15A of the Act deserves consideration. The provisions of section 5(2)(a) of the Act canno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. AR wherein the CBDT Circular No. 13/2017 shall be applied to the assessee who is working on-shore and merely because of the use of the word seafarer in the Circular the benefit to the assessee cannot be denied. The clarification given by the Ministry of Finance in Circular No. 13/2017 is to mitigate the hardships faced by the assessees where a non-resident received his salary in the NRE account maintained with an Indian Bank, since conditions of his employment are not restricted to a single place but either in the ships or in the onshore projects elsewhere. We are therefore of the considered opinion that this beneficial Circular No. 13/2017 of the CBDT shall be applied to the instant case. Considering the above facts and circumstance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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