Citizenship cannot be decided based on Definition of ‘Resident’ under Income Tax Act

Smt Kamla Vs Hindustan Petroleum Corp. Ltd. (Rajasthan High Court at Jodhpur)

Introduction: The legal battle between Smt. Kamla and Hindustan Petroleum Corp. Ltd. unfolds in the Rajasthan High Court at Jodhpur. At the heart of the dispute is the residency status of the respondent and its impact on the award of an LPG distributorship. The court’s stance on residency criteria under the Foreign Exchange Management Act, 1999, and the Income Tax Act, 1961 is pivotal to understanding the case.

Detailed Analysis:

1. Residency Criteria Conflict: Smt. Kamla challenges the eligibility of the respondent for an LPG distributorship, asserting non-residency based on the 180-day criterion in the Income Tax Act. The court scrutinizes the applicability of residency definitions under the Foreign Exchange Management Act and the Income Tax Act.

2. Time-Bound Challenge: The court addresses the issue of the petitioner’s complaint being time-barred. Smt. Kamla alleges fraud, seeking an exemption from the 30-day limitation. The court examines the guidelines and emphasizes the absence of evidence supporting false declarations during the application.

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