Ordinary residence abroad for wealth-tax exemption covers semi-permanent deputation without a fixed return date.

Ordinary residence in a foreign country for wealth-tax exemption was interpreted by its plain and ordinary meaning, and a deputation abroad on a semi-permanent basis was treated as sufficient where there was no definite time limit showing an immediate return to India. The assessee's residence in the United States therefore fell within section 5(1)(xxxiii) of the Wealth-tax Act, 1957, and the restrictive view that only Indians settled permanently abroad were covered was rejected. The exemption was accordingly upheld and the withdrawal order set aside.

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Issues: Whether the assessee, while on deputation in the United States, was "ordinarily residing in a foreign country" so as to qualify for exemption under section 5(1)(xxxiii) of the Wealth-tax Act, 1957.

Analysis: The expression was construed according to its plain language and ordinary meaning. The assessee was not on a short trip or tour, but was residing abroad on a semi-permanent basis, with the posting capable of renewal for a further period. On these facts, there was no definite time limit showing an immediate return to India, and the residence in America answered the description of ordinary residence in a foreign country. The Commissioner's view that only Indians settled abroad were covered was rejected as too narrow.

Conclusion: The assessee was entitled to exemption under section 5(1)(xxxiii) of the Wealth-tax Act, 1957, and the Commissioner's order withdrawing the exemption was set aside.

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