Case Law Details
ACIT Vs Nishant Kanodia (ITAT Mumbai)
Introduction: In a recent decision by the Mumbai Income Tax Appellate Tribunal (ITAT), the case of ACIT vs. Nishant Kanodia (ITA no.2155/Mum/2023) for the assessment year 2013-14 took center stage. The dispute revolved around the residential status of the individual assessee, and the ITAT’s ruling brought forth a significant victory for the taxpayer.
Detailed Analysis: The crux of the matter involved a search and seizure action related to Matix (Nishant Kanodia) Group. The Assessing Officer (A.O.) contested the non-resident status claimed by the assessee, asserting that leaving India as an “Investor” on a business visa made him a resident for tax purposes. The A.O. added offshore income to the total income, leading to a contentious dispute.
The Commissioner of Income Tax (Appeals) sided with the assessee, considering the purpose of the stay in Mauritius for employment. The Revenue filed an appeal against this decision, bringing the case to the ITAT.
The tribunal delved into the provisions of section 6(1) of the Income Tax Act, which governs an individual’s residential status. Despite the assessee staying in India for 176 days during the relevant year, the claim for non-resident status relied on Explanation–1(a) to section 6(1)(c).
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