Unless a non-resident earns income from business operations carried out in India, such income cannot be deemed as accruing or arising in India

Section 4 provides that the income tax shall be charged on the total income of any assesse of the previous year for any assessment year at the rates in accordance with and subject to the provisions of this Act. Scope of total income of any person has been enshrined in section 5. The assessee in question is a non-resident company. Section 5(2) mandates that the total income of a non-resident includes the income from whatever source derived which is received or is deemed to be received in India; or accrues or arises or is deemed to accrue or arise i

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