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February 2023

Article 4 of India – Singapore tax treaty – Tie Breaker in case of individual breaks in favor of Singapore since the assessee stayed in a rental house with his family in Singapore. The Indian house was rented and the assessee paid tax on Singapore income.

By Geeta Jani | Dhishat B. Mehta | Bhaumik Goda
Chartered Accountants
Reading Time 3 mins
15 Sameer Malhotra vs. ACIT
[2023] 146 taxmann.com 158 (Delhi - Trib.)
[ITA No: 4040/Del/2019]
A.Y.: 2015-16
Date of order: 28th December, 2022

Article 4 of India – Singapore tax treaty - Tie Breaker in case of individual breaks in favor of Singapore since the assessee stayed in a rental house with his family in Singapore. The Indian house was rented and the assessee paid tax on Singapore income.

FACTS

The assessee received salary income from the Indian Company (ICO) for the period 1st April, 2014 to 25th November, 2014 and from Singapore Company (Sing Co) from 15th December, 2015 to 31st March, 2015. The assessee did not offer salary received from Sing Co to tax in India on the basis that under India-Singapore DTAA he was a resident of Singapore. The AO held that the assessee was a resident of India under Act as he was physically present in India for more than 182 days. Further, the assessee was an Indian resident even under the tie-breaker test of the DTAA. CIT(A) upheld the order of the AO. Being aggrieved, assessee appealed to Tribunal.
 

HELD

  • The assessee shifted with his family to Singapore, stayed there for the whole of the remaining period in the relevant assessment year and earned the income while serving in Singapore itself.

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