Proof of service outside India pre-requisite for beneficial tax claim – ITAT Pune

Madhukar Vinayak Dhavale Vs. ITO, International Taxation (ITAT Pune)– An individual who leaves India as a crew member of an Indian ship will be a non-resident if his stay in India is less than 182 days in the tax year. The assessee has not produced any evidence to support his claim that he stayed outside India for the purpose of employment beyond 158 days.

Hence, the assessee will be a resident of India. The decision of the Honourable Karnataka High Court in the case of DIT (International Taxation vs. Prahlad Vijendra Rao (198 Taxman 551) cannot be applied herein as the facts are prima facie different. In the said decision, the tax payers‟ stay outside India for the purposes of employment exceeded 225 days in a tax year and hence he was considered to be a non-resident. On the contrary, in the current scenario, the assessee does not satisfy the 182 days condition and hence is not a non-resident. AO is directed to compute the income in accordance with law.

INCOME TAX APPELLATE TRIBUNAL, PUNE

I.T.A. No. 17/PN/2010 (Asst. Year: 2006- 07)

Mr Madhukar Vinayak Dhavale Vs. Income- Tax Officer

ORDER

PER G.S. PANNU, AM

This appeal by the assessee is directed against the order of the Commissioner of Income-tax (Appeals)-I, Pune dated 8.9.2009 which, in turn, has arisen from an order dated 26.12.2008 passed by the Assessing Officer under section 143(3) of the Income-tax Act, 1961 (in short “the Act”), pertaining to the assessment year 2006-07.