Case Law Details
DCIT Vs Dipendu Bapalal Shah (ITAT Mumbai)
In the instant case undisputedly the assessee is a non-resident since 1979, as per the provisions of Section 6 of the IT Act. The scope of income in case of a non-resident is defined under the provisions of sub-section (2) of section 5 of the Act. As per this section, a person who is a ‘non-resident’ has to pay tax only on that income which is either received or is deemed to be received by him in India, or accrues or arises or deemed to accrue or arise to him in India, during the year, therefore assessee will be liable to tax only in respect of income received or accrued to him in India. Further, section 9 of the Act, lays down the provisions relating to income which is deemed to accrue or arise in India. As the assessee Mr. Dipendu Shah was not having any of his business operations in India during AY 2006-07 and AY 2007-08, there is no income which has either deemed to accrue or arise in India under section 9 of the Act, Thus, the initial contribution or even other amounts in the foreign bank account mentioned by AO in the notice does not fall under the purview of section 5(2) read with section 9 of the Act’. Accordingly, assessee is required to be pass through aforesaid test of taxability of non-resident. It is a well settled position in law that a ‘non-resident’, having money in a foreign country cannot be taxed in India if such money has neither been received or deemed to be received, nor has it accrued or arisen to him or deemed to accrue or arise to him in India.
FULL TEXT OF THE ITAT JUDGMENT
These are appeals filed by the Revenue against the order of CIT(A) for the A.Y.2006-07 and 2007-08 in the matter of order passed u/s.143(3) r.w.s. 147 of the IT Act.
2. Common grounds have been taken by the Revenue in both the years which pertains to deletion of addition of amount credited in the HSBC Bank account Geneva, Switzerland. The ground taken by the Revenue in the A.Y.2006-07 reads as under:-
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