1984 (12) TMI 83

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....pened by the assessee under rule 3 of the Non-resident (External) Accounts Rules, 1970. These rules were framed under the Foreign Exchange Regulation Act, 1947. We shall proceed on the assumption that it is this account with which we are concerned. In the three years, interest credited in this account was Rs. 12,973, Rs. 20,375 and Rs. 19,377, respectively. The assessee claimed that said income was not includible in computing the total income. He relied on the provisions of section 10(4A) of the Income-tax Act, 1961 ('the Act'). The ITO as well as the Commissioner (Appeals) negatived this claim on the ground that exemption under the said clause would be available only to a non-resident and not to an assessee, who was resident and not ordina....

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....n India. The expression 'person resident in India' is defined in section 2(p) of the said Act. The contention on behalf of the assessee is that he does not come within the definition of 'person resident in India' in section 2(p) of the said Act and as such, he comes within the ambit of a 'person resident outside India' in section 2(q) of the said Act. 5. The question whether the assessee comes within the ambit of 'Person resident outside India' within the meaning of that expression in section 2(q) of the said Act has not yet been investigated. Investigation into said question would be necessary only if we accept the contention of the assessee to the effect that the term 'non-resident' in clause (4A) of section 10 of the Income-tax Act re....

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....erest in Non-resident (External) Account opened by all the persons who came with the definition of the term 'person resident outside India' in section 2(q) of the Foreign Exchange Regulation Act, irrespective of the fact whether he was non-resident within the meaning of section 2(30) of the Income-tax Act. We are unable to agree. If such had been the intention, there would have been express reference to the 'person resident outside India' in said clause and said term would have been separately defined in the Act. Our attention was invited to clause (4) of section 10 and comparison was made between the provision contained therein and that contained in clause (4A) of section 10 and on the basis of the comparison, it was contended that the int....