TaxTMI 
TaxTMI 
2016 (12) TMI 876
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....12. The petitioner had filed income tax return for such assessment year under the residential status as non-residential Indian. He had disclosed a receipt of a remuneration of Rs. 5,63,850/- in US Dollars. The petitioner was issued an assessment order cum intimation under Section 143(1). The petitioner did not file any appeal. The petitioner had applied under Section 264 of the Income Tax Act, 1961. Learned Advocate for the petitioner has submitted, referring to 2011 (198) Taxman 551 (Director of Income Tax v. Prahlad Vijendra Rao) that, the income received by the petitioner is exempt from income tax as the petitioner had received his salary for work done outside India for a period of 286 days during the assessment year. Relying upon 200....
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....d herein. He has submitted that, the decision relied on by the petitioner relates regular appeals and that, they have no manner of application to the facts of the present case. I have considered the rival contentions of the parties and the materials made available on records. The petitioner is an Indian citizen. He is an income tax assessee. He has filed a return for the assessment year 2011-2012 with the Income Tax authorities. The petitioner claims to be an engineer and to be engaged as such by a foreign company. The petitioner claims that, he has worked as an engineer with the foreign company for 286 days during the assessment year. He has filed income tax return for the assessment year disclosing an income of Rs. 5,63,850/-. He ha....
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....he provisions of this Act, the total income of any previous year of a person who is a nonresident includes all income from whatever source derived which- (a) is received or is deemed to be received in India in such year by or on behalf of such person; or (b) accrues or arises or is deemed to accrue or arise to him in India during such year. Explanation 1.- Income accruing or arising outside India shall not be deemed to be received I India within the meaning of this section by reason only of the fact that it is taken into account in a balance sheet prepared in India. Explanation 2.- For the removal of doubts, it is hereby declared that income which has been included in the total income of a person on the b....
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....e had accrued in India or outside India. The question whether the petitioner has rendered services in India or not is a question of fact. It is not disputed that the petitioner as a marine engineer had rendered services outside India for the period of 286 days. He has received his remuneration for such work from a foreign company. Consequently, the income received by the petitioner for services rendered outside India has to be considered as income received out of India and treated as such. There is anomaly in the quantum of income received by the petitioner during the period. In his income tax return he has initially stated that his income to be Rs. 5,63,850/- while in the proceedings under Section 264, he claims to have received a su....
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....sts with assessee on whom it is imposed by law, officers should - (a) draw their attention to any refunds or reliefs to which they appear to be clearly entitled but which they have omitted to claim for some reason or other; (b) freely advise them when approached by them as to their rights and abilities and as to the procedure to be adopted for claiming refunds and reliefs." In Mahalaxmi Sugar Mills Ltd. (supra) the Hon'ble Supreme Court has held that, there is a duty cast upon the Income Tax Officer to apply the relevant provisions of the Income Tax Act for the purpose of determining the true figure of the assessee's taxable income and the consequential tax liability. In the event, the assessee fails to claim bene....