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Arijit Ranjan Sarker Vs The Assistant Commissioner of Income Tax, International Taxation

Case No: ITA Nos.726 and 1848/Del/2022
Court: Income Tax Appellate Tribunal, Delhi Bench
Date: 2/19/2025

Parties Involved

appellantArijit Ranjan Sarker
respondentThe Assistant Commissioner of Income Tax, International Taxation

Facts Summary

The assessee, Arijit Ranjan Sarker, is an individual employed with Master Card India Services Private Limited and was sent on an international assignment to M/s Mastercard Asia Pacific Pte. Ltd. in Singapore from August 2015. During the relevant financial year, he was present in India for 54 days (35 workdays) and claimed that the salary for this period was non-taxable under Article 15(2) of the India-Singapore Double Taxation Avoidance Agreement (DTAA). The Assessing Officer (AO) disallowed this exemption, leading to the assessee filing an appeal. The assessee argued that his salary was cross-charged to Mastercard Asia Pacific Pte. Ltd. and that the company did not have a Permanent Establishment (PE) in India, thus making the salary non-taxable in India.

Decision in favour of

Assessee

Legal Issues

  • 1. Whether the AO erred in assessing the total income of the appellant.
  • 2. Whether the directions issued by the DRP are bad in law.
  • 3. Whether the AO/DRP erred in not granting salary exemption under Article 15(2) of the DTAA.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

2 precedents cited in this judgement.

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