Section 163 - Who may be regarded as agent - Income-tax Act, 1961

C.-Representative assessees-Special cases Who may be regarded as agent. 163. (1) For the purposes of this Act, agent , in relation to a non-resident, includes any person in India- (a) who is employed by or on behalf of the non-resident; or (b) who has any business connection with the non-resident; or (c) from or through whom the non-resident is in receipt of any income, whether directly or indirectly; or (d) who is the trustee of the non-resident; and includes also any other person who, whether a resident or non-resident, has acquired by means of a transfer, a capital asset in India : Provided that a broker in India who, in respect of any transactions, does not deal directly with or on behalf of a non-resident principal but deals with or through a non-resident broker shall not be deemed to be an agent under this section in respect of such transactions, if the following conditions are fulfilled, namely:- (i) the transactions are carried on in the ordinary course of business through the first-mentioned broker; and (ii) the non-resident broker is carrying on such transactions in the ordinary course of his business and not as a principal. 1 [ Explanation .-For the purposes of this sub-section, the expression business connection shall have the meaning assigned to it in Explanation 2 to clause (i) of sub-section (1) of section 9 of this Act. ] (2) No person shall be treated as the agent of a non-resident unless he has had an opportunity of being heard by the 2 [ Assessing ] Officer as to his liability to be treated as such. ************* NOTES:- 1. Inserted vide Section 68 of the Finance Act, 2003 w.e.f. 01-04-2004 2. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before it was read as, Income-tax