TMI Blog2010 (4) TMI 914X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 147 by holding the assessee as representative assessee of legal heirs of late Smt. Savitaben R. Patel for holding power of attorney of Smt. Savitaben R. Patel before death and thereafter of legal heirs and is 'agent' under section 163(1)(b) of the Act in view of business connection." It is stated by the learned Departmental representative that late Smt. Savitaben R. Patel sold her land to Shri Siddharth S. Patel (assessee). This transaction was carried out by an irrecoverable power of attorney given by late Smt. Savitaben R. Patel to Shri Siddharth S. Patel. Smt. Savitaben R. Patel expired on September 25, 1995 and legal heirs of the deceased also gave general power of attorney to Shri Siddharth S. Patel. That late Smt. Savitaben R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... em. The assessee is a buyer of plot of land sold by Smt. Savitaben. This was only connection assessee was having with Smt. Savitaben. The power of attorney was given to the assessee to complete the transaction of sale of such plot. The assessee does not have any business connection with her legal heirs. He further submitted that as per section 163(2) before appointing anybody as an agent, the Assessing Officer has to give an opportunity to such person. No such opportunity was given to the assessee. In view of the above, he stated that the order of the Commissioner of Income-tax (Appeals) should be sustained. We have carefully considered the arguments of the both sides and perused material placed before us. We find that the sections 160(1) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or for the benefit of any person, such trustee or trustees. 163. Who may be regarded as agent.-(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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... q.ft. from her and she had given power of attorney to the assessee to complete the sale transaction. Admittedly, late Smt. Savitaben Patel was not a non-resident. Considering the totality of the above facts, in our opinion, neither section 160(1) nor section 163(1) was applicable. The Commissioner of Income-tax (Appeals) has also recorded the similar finding. The relevant portion of his finding recorded in the order reads as under : "I do not agree with the view of the Assessing Officer that the power of attorney was given to the appellant to appoint him as her agent. The appellant has been assessed in the status of representative assessee of the legal representative of late Smt. Savitaben. The provisions of section 160(1)(i) and 163(1) w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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