TMI Blog2024 (2) TMI 1372X X X X Extracts X X X X X X X X Extracts X X X X ..... d succeeded by the services rendered outside India. Since, the assessee has rendered services outside India, the salary cannot be taxable in India. As per the definition the salary paid or the advances received are to be included in the total income of the person when the salary becomes due. From the concurrent reading of Section 5 dealing with scope of total income, Section 15 dealing with computation of total income under the head salary and chargeability thereof and Section 9 dealing with income arising or accruing in India with reference to the salaries and the services rendered in India, we hold that no taxability arises on the salary/allowances received by the assessee since the assessee is a non-resident and has rendered services out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tance-based taxation system. 5. That on the facts and circumstances of the case in law, the Ld. AO erred in law in proposing the initiation of penalty proceedings under section 270A of the Act for underreporting of income. 4. The assesse had filed his return of income u/s 139 of the Income-tax Act, 1961 on 30.08.2018 declaring an income of Rs.27,98,600/-. The assessee has received following amounts in the year: Particulars Amount (INR) Gross salary 1,21,23,294 Less: exemption under section 10 of the act 13,00,000 Taxable Salary 1,08,23,294 Less: relief under article 16(1) of the India-UL DTAA 92,85,786 Taxable salary as per part B-TI of ITR 15,37,508 Salary and Allowances: 5. The Assessing Officer after going through the after details deter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be received in India in such year by or on behalf of such person ; or (b) accrues or arises or is deemed to accrue or arise to him in India during such year. Explanation 1. Income accruing or arising outside India shall not be deemed to be received in India within the meaning of this section by reason only of the fact that it is taken into account in a balance sheet prepared in India. Explanation 2. For the removal of doubts, it is hereby declared that income which has been included in the total income of a person on the basis that it has accrued or arisen or is deemed to have accrued or arisen to him shall not again be so included on the basis that it is received or deemed to be received by him in India. 8. This section deals with the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of a non-resident, being a person engaged in the business of running a news agency or of publishing newspapers, magazines or journals, no income shall be deemed to accrue or arise in India to him through or from activities which are confined to the collection of news and views in India for transmission out of India ; (d) in the case of a non-resident, being (1) an individual who is not a citizen of India ; or (2) a firm which does not have any partner who is a citizen of India or who is resident in India ; or (3) a company which does not have any shareholder who is a citizen of India or who is resident in India, no income shall be deemed to accrue or arise in India to such individual, firm or company through or from operations whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Act is as under: Salaries. 15. The following income shall be chargeable to income-tax under the head Salaries (a) any salary due from an employer or a former employer to an assessee in the previous year, whether paid or not; (b) any salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer though not due or before it became due to him; (c) any arrears of salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer, if not charged to income-tax for any earlier previous year. Explanation 1. For the removal of doubts, it is hereby declared that where any salary paid in advance is included in the total income of any person for any previous yea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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