2010 (11) TMI 801

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....bsp; JUDGEMENT   C.N. Ramachandran Nair, J:-   1. The question raised in the Revenue's appeal is whether the Tribunal was justified in holding that the respondent assessee is entitled to concessional rate of tax under section 115H read with section 115E on the interest received from the bank deposits maintained by the assessee. We have heard standing counsel for the department a....

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....losed from banks, the subsequent deposits are only deposits of Indian rupee made by a resident, which cannot be termed as a foreign exchange asset under section 115C(b) for availing concession rate under sections 115 E and H of the Act. Senior counsel for the assessee, on the other hand, referred to the specific finding in the 1st appellate authority's order and contended that transfer of deposits....

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....; Where a person, who is a non-resident Indian in any previous year, becomes assessable as resident in India in respect of the total income of any subsequent year, he may furnish to the (assessing) Officer a declaration in writing along with his return of income under section 139 for the assessment year for which he is so assessable, to the effect that the provisions of this Chapter shall conti....

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....e considered is whether the transfer of NR deposits from one bank to another will lead to loss of identity of the asset from that of a foreign exchange asset. What is clear from the latter part of section 115H is that, the foreign exchange asset ceases to be so only when it is transferred or converted into money. The transfer or conversion into money applies only to specified assets like shares, d....