Merchant navy salary in indian nre a/c taxabiliy

I have one more question regarding nre account status, it is termed as non resident external account ,though opened in india it is called external. Because total amount is reparitable , there is no permission not limitation for sending money out.This account however cannot receive any income in India,so how is 5(2)a applicable,this account can receive income outside India and not inside as per Fema ,aas per this any income received in india must be done in NRO ,5(2)a cannot be applicable on NRE, law has to be interpreted in words, there is sufficient clarity , here department has gone one step further and interpreted income received from outside india, where as it is income received in India, for which NRE account cannot be used.

Even NRO can receive money from outside india, this can be subject to taxation, and even ordinary saving account can receive money from outside,then why NRE was made, to receive income totally from outside and not inside india,.The aim was to increase foreign exchange,even interest is tax free.Hence 5 (2)a was never intended for NRE.To my understanding NRE is like transit zone in airport ,which though in india ,still not in india, pls advice.

Most respectfully, ITAT decision in  Tapas Kr. Bandopadhyay is an incorrect decision. The settled position of law till now and which has been upheld in various decisions like Avtar Wadhwan case is that if service is rendered outside India, then even if salary is received in India, no tax incidence arises under the Indian income tax law. 

I have captured this controversy in a detailed post along with decisions you can have a look: https://www.abhinavgulechha.com/nri-seafarer-taxation/

Very recently by Dec end 2016 there are another favourable HC judgement in case of Utanka Roy

It is unfortunate that Kolkata bench of ITAT in Tapas Kr. case has not followed decision of higher court and it has caused so much controversy and heartburm for seafarers. 

I request all seafarers to go into litigation by filing an appeal to the CIT Appeals and if not resolved, to ITAT, in case they receive an unfavourable assessment order taxing such income.

Yes I agree and due to these controversies, seafarerers are at the receiving end and when litigations are made, one never knows in whose favour the decision will be made. There was never any confusion, just one ITAT hearing and there is confusion.