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2014 (8) TMI 6 - HC - Income TaxNotice u/s 163(2) – Employee of the assessee to be treated as representative agent for the particular assessment year u/s 163(1)(c) or not - Mr Francis who is no longer in the employment of the petitioner became a non-resident subsequently. - Held that:- The relevant accounting year is the previous year ending on 31.03.2003 which pertains to the assessment year 2003-04. At that point of time Mr Francis Daly was not a non-resident. Therefore, in relation to that accounting period the petitioner cannot be appointed as a representative assessee. This is notwithstanding the fact that subsequently Mr Francis Daly attained the status of a non-resident and that when he was a non-resident the notice under Section 163(2) were issued. - the relevant period for consideration would be the relevant accounting period which in this case happened to be the year ending on 31.03.2003. Section 160(1)(i) of the said Act makes it clear that the expression “representative assessee” has to seen “in respect of the income of a non-resident”. It is obvious that when we construe the expression “income of a non-resident” it has reference to income in a particular previous year/accounting year. The income of that year must be of a non-resident. If that be so, the agent of the non-resident or the deemed agent under Section 163 of the said Act would be the representative assessee. The petitioner is not an agent of Mr Francis Daly. Section 163(1)(c) talks about the person from or through whom the non-resident “is in receipt of any income, whether directly or indirectly” – relying upon Abdullabhai Abdul Kader Versus Commissioner of Income-tax [1952 (3) TMI 33 - BOMBAY HIGH COURT] - the income bears reference to the accounting year for which the statutory agent is to be appointed – thus, the assessee cannot even be regarded as a deemed agent u/s 163(1)(c) of the Act - assessee cannot be considered to be the representative assessee of Mr Francis Daly in respect of the AY 2003-04 – Decided in favour of Assessee.
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