TaxTMI 
TaxTMI 
TaxTMI 
2013 (5) TMI 606
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....arred by 8 days and revenue has filed condonation petition. When this was confronted to Ld. counsel for the assessee, he fairly conceded that he has no objection in case the delay is condoned. Since Ld. counsel for the assessee is not contesting the reasons given by revenue in its condonation petition, we condone the delay and admit the appeal. 3. The only issue in this appeal of revenue is against the order of CIT(A) deleting the addition made by AO on account of receipt of salary treated by assessee as exempt u/s. 10(6)(vii) of the Act. For this, revenue has raised following ground: "The Ld. CIT(A), Jalpaiguri has deleted the addition of Rs.12,34,980/- on account of receipt of salary by the assessee treating the same as exempt u/s. 10(6....
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....ended by Finance Act, 2007 wr.e.f. 25.08.1976. 5. Aggrieved, assessee preferred appeal before CIT(A), who treated the status of assessee as "Non-Resident" in view of CBDT Circular no. 586 dated 28.11.1999 and also following the decision of Hon'ble Madras High Court in the case of CIT Vs. ICL Shipping Ltd. (2009) 315 ITR 195 (Mad). CIT(A) decided the issue as under: "I have carefully considered the submission of the Assessee and also perused the assessment order. I have a1so gone through the Circular No. 586 dated 28.11.1999. The relevant part of the Circular reads - "After the amendment made in Section 6 of the Income-tax Act, 1961 by the Finance Act, 1990, w.e.f. 01.04.1990, an Indian Cítizen who is a member of the crew of an Ind....
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....oreign territorial water, the assessee will be treated as 'Non-Resident' in such situation. First of all, we have to go though the definition in it as provided in the Act i.e. section 2(25A), which reads as under:- "2(25A). India" means the territory of India as referred to in article 1 of the Constitution, its territorial waters, seabed and subsoil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976 (80 of 1976), and the air space above its territory and territorial waters;" The section before retrospective amendment by Finance Act, 2007, with retrospective effect from 25.08.197....
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.... supra has also held as under: "On a reading of sections 2(30), 2(42) and 6 together, for a person to claim the status of a " non-resident" has only to satisfy that though such person as a crew works for an Indian shipping company rendered such service for the said company in the ship outside the territorial waters of India for a period exceeding 182 days. For that purpose, it would be relevant to extract sections 2(30), 2(42) and Explanation to section 6, which reads as under: " 2.(30) ` non-resident' means a person who is not a ` resident' and for the purposes of sections 92, 93 and 168, includes a person who is not ordinarily resident within the meaning of clause (6) of section 6 ; 2.(42) ` resident' means a person who is resident in ....
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....ted any tax at source in respect of the salary paid to such crew for the relevant period." 7. Similarly, in CIT v. Indo Oceanic Shipping Co. Ltd. [(2001) 247 ITR 247, 259 (Bom)], it has been held that the above said circular No. 586 though in the context of deductions in the hands of employees, specifically lays down that, India, as defined under section 2(25A) of the Income-tax Act, does not extend to Indian ships operating beyond Indian territorial waters. The circular to the above extent, supports our interpretation that Indian ships operating beyond Indian territorial waters do not come within the term 'India' as defined in section 2(25A). The above said circular No. 586 has been relied upon in CIT v. Avtar Singh Wadhwan (2001) 247 ITR....