Assessee's Indian Employment Deemed Resident for Tax Year 1983-84

The ITAT Bombay-A ruled that the assessee should be treated as a resident for the assessment year 1983-84. The Tribunal found that the assessee's trips abroad were not for the purpose of employment outside India as required by the Income Tax Act. Since the assessee was employed by an Indian employer and received salary in India, the Tribunal concluded that the trips abroad were related to Indian employment and did not qualify as leaving India for employment outside the country. The appeal was allowed, overturning the CIT(A)'s decision.

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Issues:
Status of the assessee - resident or non-resident for assessment year 1983-84.

Analysis:
The appeal before the Appellate Tribunal ITAT Bombay-A concerned the status of the assessee for the assessment year 1983-84. The assessee claimed non-resident status as he had left India for employment outside the country for a significant period during the relevant previous year. The CIT(A) directed the Assessing Officer to treat the assessee as a non-resident based on clause (a) of the Explanation to section 6(1) of the Income Tax Act. However, the revenue challenged this decision, arguing that the assessee did not meet the criteria for non-resident status. The Tribunal analyzed the facts, noting that the assessee had undertaken multiple trips abroad during the year but was employed by an Indian employer and received salary in India. The Tribunal referred to a clarification by the Central Board of Direct Taxes and emphasized that the assessee did not leave India for the purpose of employment outside India, as required by the relevant provision. The Tribunal concluded that the assessee's trips abroad were in connection with his employment in India and did not constitute leaving India for employment outside the country. Citing a precedent, the Tribunal held that only a permanent or temporary posting outside India would qualify as employment outside India, not mere tours or stays abroad related to Indian employment. Therefore, the Tribunal allowed the appeal, setting aside the CIT(A)'s order and directing the assessee to be treated as a resident for the assessment year 1983-84.

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