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Whether the tribunal was correct in holding that payment made by the assessee of Rs. 4,93,07,540/- paid to Mr.Madan S.Kumar & Mr.Kevin Koenig is income which has arisen or accrued to the recipients in USA as provided under Article 16 of the DTAA between Indian and USA?

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Sec. 5(2), 201(1) of the Income Tax Act, 1961 - Income - Twin substantial issues arose for consideration in appeal viz., (a) whether the remittance of amounts to employees under non compete agreements are chargeable to tax under Section 5(2) of the Act, (b) if so, the head of income under which it is liable for taxation under the Act and issue of its taxability under 'the DTAA' also needs to be determined. High Court in the appeal of Revenue against the order of Tribunal in favour of assessee held that ”In the instant case, Section 5(2) of the Act has no applicability.“ and ”The amount paid to the employees under the non compete agreement is covered by the expression 'salary / profits in lieu of salary', which is not taxable in India in view of Article 16 of DTAA“. Therefore, held that no substantial questions of law arise for consideration in appeal. In the result, appeal of revenue dismissed.—DIT vs. SASKEN COMMUNICATION TECHNOLOGIES LTD.[2020] 26 ITCD Online 035 (KARN)