The Kolkata bench of the Income Tax Appellate Tribunal held that NRI serving outside India is eligible for DTAA benifit under Article 15(1) of India Morocco DTAA
It was submitted that the assessee is a Non-Residential Indian and had worked at a assignment at Morocco and salary for doing this service was though received in India, but the same was subjected to tax as per the Income-tax laws of Morocco and tax was paid thereof.
On the other hand, the rival party argued supporting the orders of both the lower authorities further stating that the assessee has not been able to place Tax Residency Certificate of being a resident of Morocco and consequently the assessee has not been able to prove that the assessee was a resident in Morocco.
After hearing both the parties, the tribunal observed that the assessee is an individual and an employee working with M/s. Dell International Private Limited. Income of Rs.51,01,460/-, declared in the return of income filed on 20/07/2012 claiming Nil refund but later on return was revised on 27/02/2013 declaring income of Rs.10,83,320/- and claiming refund of Rs.12,41,606/-.
During the course of scrutiny proceedings, the Assessing Officer noticed that the assessee claimed benefit under DTAA of Rs.40,40,448/- and also claimed to be a non-resident Indian. The said benefit under DTAA has been claimed on the ground that the salary income received by the assessee was taxed as per the taxation laws of Morocco and, therefore, the assessee is eligible for benefit under Article 15(1) of the India Morocco Double Taxation Avoidance Agreement.
Since the decision of the Tribunal is squarely applicable on the facts of the present case, the tribunal held that since the assessee is a NRI and stayed more than 182 days outside India, and has provided services as an employee outside India and since the salary for the period working outside India at Morocco has been claim to be subjected to tax as per the income tax laws of Morocco we hold that assessee is eligible for DTAA benefit as per Article 15(1) of the India Morocco DTAA.
The two bench member consisting of Sonjay Sarma (Judicial member) and DR. Manish Board (Accountant member) held that Assessing Officer shall give sufficient opportunity to the assessee to show that the said documents are towards the tax paid in Morocco on the income from salary received for performing his duties for the employee M/s. Dell International Private Limited. And In case the Assessing Officer is satisfied with these documents, necessary relief may be granted to the assessee by not taxing the alleged salary income.
Thus the appeal was allowed.
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