Assessee is an employee of an Indian company. He was sent to abroad to Indonesia for rendering services there. He received remuneration and other allowances from foreign assignment in Indonesia. In the return of income the assessee  claimed  that income received and accrued in Indonesia for rendering service outside India, was not taxable in India. Assessing Officer rejected claim of assessee holding that said income was taxable in India as assessee had failed to produce valid tax residency certificate (TRC) from Indonesia. CIT(A) dismissed the appeal. On appeal the Tribunal held that  failure to produce TRC before Assessing Officer was a procedural lapse and did not negate substantive compliance. Since assessee was a non-resident employee and services were rendered in Indonesia, income related to services rendered received outside India was not taxable in India. Claim of the assesse is allowed. (AY. 2016-17)