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2017 (12) TMI 347 - ITAT DELHIResident in India - Taxability in India - period of stay in India - requirement to file return on India - Held that:- The assessee’s presence in India was only for 31 days in the relevant previous year. When, the assessee who is an U.S.A. citizen since 14.9.1999; and is living in USA since 1974; and his presence in India during the relevant previous year is less than 182 days, then in terms of section 6, the assessee cannot be held to be resident in India. The findings of the Learned CIT(Appeals) as well as that of the Assessing Officer in the wake of remand report itself gets vitiated. Now it is a matter of fact that the assessee was not a resident in India in terms of section 6 and was therefore, neither required to file any return of income in India not any income can be brought to tax in India. Therefore, the deposits made in the foreign bank account cannot be held to be included as taxable income in India. Similarly, with regard to the addition which represented deposits of US $ 7,000/- in ICICI Bank, New Delhi, we find that the assessee being an NRI was entitled to bring US $ 10,000 without any declaration in terms of Baggage Rules as given under FEMA. Thus the assessee being an American citizen who is otherwise permitted to convey US $ 10,000 in India without any explanation then the same cannot be taxed in India. Otherwise also, to be taxable in India, assessee has to be resident of India within the scope and meaning of section 6. Thus, on the merits we hold that the addition made by the Assessing Officer and sustained by the Learned CIT(Appeals) cannot be upheld for the reason that the assessee was neither liable to file return of income in India nor any income can be held to be chargeable in the hands of the assessee as he was not resident of in India in terms of section 6. Accordingly, the additions sustained by the Learned CIT(Appeals) is deleted. - Decided in favour of assessee.
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