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

Advertisement 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 f...