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Documents citing Capt. A.L. Fernandes vs Ito on 19 December, 2001

Gujarat Liqui Pharmacaps Pvt. Ltd.,, ... vs Assessee on 10 September, 2015

The ld.CIT(A) has followed the decision of Coordinate Bench rendered in the case of Cap.A.L. Fernandes vs. ITO (2002) 81 ITD 203(Mum) and was also of the opinion that the salary in question were credited two employees' accounts maintained in India. The same were deemed to be received in India and also as per section 5 of the Act irrespective of the status of the concerned employees, the same were taxable in India. The only question which requires for consideration is that whether the salary paid to foreign employees was taxable in India. Consequently, the tax was required to be deducted by the assessee. The residential status of any person is determined in accordance with the provisions of section 6 of the Act. The authorities below have not made disallowance on the basis of the status of the assessee. The disallowance has been made on the basis that the income received by the persons was deemed to have been received and accrued in India. Therefore, same was taxable in India. The ld.counsel for the assessee argued at length to buttress the ITA No.573/Ahd/2012 Gujarat Liqui Pharmacaps Pvt.Ltd. vs. DCIT Asst.Year - 2008-09 -6- contention that salary paid to employees posted out of India, and rendering services out of India would not be taxable. The Hon'ble Karnataka High Court in the case of Director of Income Tax (Int.Taxn.)
Income Tax Appellate Tribunal - Ahmedabad Cites 7 - Cited by 0 - Full Document

Sri Arnab Bose, Kolkata vs Dcit, Cir-1(1), Kolkata, Kolkata on 9 August, 2017

11. We have heard the rival submissions and perused the materials available on record. We find that the decision relied upon by the ld DR , was rendered by placing reliance on the 10 ITA No.176/Kol/2016 Arnab Bose, AY 2012-13 Third Member decision of Mumbai Tribunal in the case of Capt. A.L.Fernandes vs ITO reported in (2002) 81 ITD 203 (Mum ) (TM ) . This decision clearly lays down that the receipt in India of salary for services rendered on board a ship outside the territorial waters of any country would be sufficient to give the country where it is received the right to tax the said income on receipt basis. Such a provision is found in section 5(2)(a) of the Act which was applied in the aforesaid decision. It is trite that decision of a Third Member would be equivalent to a decision of a Special Bench and thereby would become a binding precedent on the division bench. However, we find that the impugned issue has been duly addressed by the CBDT Circular No. 13/2017 dated 11.4.2017 as rightly relied upon by the ld AR. For the sake of convenience, the said Circular is reproduced hereunder:-
Income Tax Appellate Tribunal - Kolkata Cites 26 - Cited by 0 - Full Document

Shri Shyamal Gopal Chattopadhyay, ... vs Dcit, International Taxation, 2(1), ... on 9 August, 2017

11.2. In the instant case, the employer has directly credited the salary, for services rendered outside India, into the NRE bank account of the seafarer in India. In our considered opinion, the aforesaid Circular is vague in as much as it does not specify as to whether the Circular covers either of the situations or both the situations contemplated above. Hence we deem it fit to give the benefit of doubt to the assessee by holding that the Circular covers both the situations referred to above. The result of such interpretation of the Circular would be that the provisions of Sec.5(2)(a) of the Act is rendered redundant. Be that as it may, it is well settled that the Circulars issued by CBDT are binding on the revenue authorities.
Income Tax Appellate Tribunal - Kolkata Cites 6 - Cited by 0 - Full Document
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