TMI Blog1987 (3) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... e under the Indian Income-tax Act; (c) if the answer to (a) above is in the negative, then since the assessee has filed a loss return the revenue authorities were wrong in arriving at a positive income without any basis; and (d) the revenue authorities were wrong in not allowing the relief under section 35B in respect of the expenses incurred inKuwait. 2. [This para is not reproduced here as it involves minor issue.] 3. In regard to the first ground that is the claim of status of non-resident, the plea of the assessee was that the firm, which comprised of three partners, namely, Sh. P.K. Bansal, Sushil Bansal and Smt. Vidu Bansal of whom the managing partner was Sh. P. K. Bansal, who remained in Kuwait throughout the previous year r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther hand, the claim of the learned senior departmental representative, Mr. O. S. Bajpai was that to appreciate the status of a person as to whether he is a resident or non-resident, it is very necessary to keep in mind as to where the firm has its existence. In the instant case, the partnership firm was formed onthe 16th of April, 1976atNew Delhiand the assessee submitted its tender to EPI inNew Delhi, which was followed by the assessee being awarded the contract inIndia. Though the actual execution of the contract was done in Kuwait, everything regarding the execution emanated from India and everything has too be gone through the EPI's office in regard to carrying of the labour from India to Kuwait, such as arrangement of Visa, etc., and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deed states "That all the partners agree that Shri Prem Kumar Bansal shall be the managing partner of the firm and he shall be authorised to manage the affairs of the firm on their behalf". One of the arguments put-fourth by the counsel for the assessee, Mr. Bansal was that since the managing partner, who was the head and brain of the business, who was in Kuwait, therefore, it has to be concluded that the control and the management of the business is situated at Kuwait. This particular argument of the counsel for the assessee, no doubt, appears valid as the affairs of the business could be said to be controlled by the managing partner from the place where he normally controls the business. What the counsel for the assessee perhaps has over ..... X X X X Extracts X X X X X X X X Extracts X X X X
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