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2015 (2) TMI 775 - HC - Income TaxEntitlement to the concessional rate of tax under Section 115H - ITAT allowed the claim - assessee has not satisfied the procedural and substantive requirements under Chapter XII A of the Income Tax Act - Held that:- As relying on assessee's own case [2012 (4) TMI 205 - MADRAS HIGH COURT ] there is no dispute regarding the interest earned on the various deposits in the Bank, which is specified under Section 115 E of the Act and the assessee is subject to 20% of taxation. So, the argument of the Revenue that requirement of filing of the declaration does not arise since that is not the condition for getting the benefit. Therefore, the Tribunal correctly held that the assessee had no obligation to file any declaration under Section 115 H or 115 E of the Act. Therefore, the Tribunal had correctly held that the assessee was not obligated to file any such declaration until the assessment year 2002-03. In respect of the nature of investment, the Tribunal also come to a conclusion that the subsequent redesignation of the NRE accounts into NRNR accounts have been made only from out of the convertible Foreign Exchange lying to the credit of the assessee in his various accounts which had been opened with the inflow of the original Foreign exchange transferred to India as approved by the Reserve Bank of India. Factually, the Tribunal found that the assessee, at the time of filing the returns, was a "Non-Resident Indian and hence, the assessee would be entitled to file returns under section 115E of the Act. That apart, in the wake of the provisions of section 115E that he is a Non-Resident Indian and the income derived is from the investment in a bank, the claim of the assessee could be considered only under section 115E of the Act. Though the assessee had filed returns claiming benefit under section 115E read with section 115H of the Act, keeping in mind the factual scenario, the Tribunal had correctly held that the assessee is a Non-Resident Indian and merely because there is a wrong description in the returns that he is a Resident, it would not alter the status of the assessee that he is a Non-Resident Indian for the assessment years in question - Decided in favour of asssessee.
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