2016 (4) TMI 298 - AT - Income Tax

Non-resident Indian status upheld for 2008-09 tax year under Income Tax and Wealth Tax Acts.

The Tribunal upheld the assessee's status as a non-resident Indian for the assessment year 2008-09, affirming the CIT(A)'s decision. It was held that only ... Status of the assessee as non-resident - Held that:- CIT(A) didn't erred in holding the status of the assessee as “non-resident”. Issues:1. Determination of the assessee's status as a non-resident for the assessment year 2008-09.2. Analysis of the taxability of the assessee's net wealth under the Wealth Tax Act, 1957.Issue 1: Determination of the assessee's status as a non-resident:The appeal was filed by the revenue against the order of the Commissioner of Income Tax (Appeals) relevant to the assessment year 2008-09. The revenue contended that the CIT(A) erred in holding the assessee's status as a non-resident without considering the clause (b) of explanation to section 6(1)(c) of the Income Tax Act, 1961. The Tribunal referred to a previous order where the assessee was held as a non-resident Indian based on the total stay in India for the relevant year. The Tribunal analyzed section 6 of the Act concerning the residential status of an individual and concluded that for non-residents, only income arising in India is taxable, while foreign income is not. The Tribunal considered the factual position and upheld the CIT(A)'s decision, dismissing the revenue's appeal.Issue 2: Analysis of the taxability of the assessee's net wealth:The Tribunal also addressed the taxability of the assessee's net wealth under the Wealth Tax Act, 1957. Referring to a previous decision by a co-ordinate bench, the Tribunal confirmed the assessee's status as a non-resident Indian. The Tribunal held that since the assessee was determined to be a non-resident under the Income Tax Act in a previous order, the same status applies for the Wealth Tax Act as well. By following the decision of the co-ordinate bench, the Tribunal dismissed the revenue's appeal, affirming the order passed by the CIT(A) regarding the assessee's non-resident status. Consequently, the appeal filed by the revenue was dismissed by the Tribunal.In conclusion, the Tribunal upheld the assessee's status as a non-resident Indian for the assessment year 2008-09 and found no reason to interfere with the CIT(A)'s order. The decision was based on a thorough analysis of the relevant provisions of the Income Tax Act and the Wealth Tax Act, as well as previous judicial precedents.