Section 163 Inapplicable Without Direct or Indirect Income Flow to NRI: ITAT Hyderabad

Sai Pragathi Estates & Constructions Private Limited Vs ITO (ITAT Hyderabad) ITAT Hyderabad Holds Developer Not an “Agent” of NRI u/s 163; Capital Gains on Developer’s Share Cannot Be Taxed in Its Hands The Hyderabad Bench of the ITAT allowed the assessee’s appeal for AY 2009-10 and deleted the addition made by treating the developer company as an “agent” of an NRI u/s 163(1)(c). The Tribunal held that the Assessing Officer was not justified in invoking the representative assessee provisions in respect of sale of Unit Nos. 602 and 602A, which were exclusively from the developer...