Assessee, an individual, during assessment year 2016-17, was employed with Amazon India between 1-4-2015 and 17-10-2015 and was subsequently transferred to Amazon USA from 20-10-2015. Assessee filed return of income but did not include his income between period 17-10-2015 and 31-3-2016 and submitted that he was qualified to be a resident of two countries for relevant period and therefore, in terms of article 4 of DTAA, his residency broke to USA for said period entitling him to claim exemption in terms of Schedule EI of Act.  Assessing Officer did not accept plea for reason that shift of assessee to USA was only a temporary one and company treated his position to be based at Bangalore.  The  Assessing Officer also held that the assessee did not get himself entitled to status of a resident of USA automatically on his going to USA. CIT(A) up held the order of the Assessing Officer. On appeal the Tribunal held that mere securing house on rent in USA was not conclusive fact that assessee had become USA resident moment he moved from India to USA. Election of assessee under IRC section 7701(b)(4) showed that in relevant year he did not meet SPT (Substantial Presence Test), which was mandatory to be considered as tax resident in USA.  On facts, assessee could not claim exemption from taxes on income earned during relevant period of his stay in USA as he was taxed in USA not on residence basis but on basis of source.  Tribunal directed the Assessing Officer to grant foreign tax credit.  (AY. 2016-17)