TMI Blog2012 (6) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... outside source, such receipt will not be an income receipt. The income was received in United Kingdom and it is only subsequent remittance, which is wholly irrelevant for taxability purposes, which was received in India. Order of Commissioner thus stands vacated - Decided in favor of assessee. - IT Appeal No. 743 (Kol.) of 2010 - - - Dated:- 31-5-2012 - Pramod Kumar, George Mathan, JJ. ORDER Pramod Kumar, Accountant Member The short issue that we are required to adjudicate in this appeal is whether or not, on the facts and in the circumstances of this case, the learned Commissioner, vide his order dated 25th March 2010, was justified in invoking his powers under section 263 of the Income Tax Act, 1961, and thereby directing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale of this property. Vide letter dated 31st May, 2005, this solicitor firm advised the assessee that the sale of property was completed and balance of 72,708.19 was due to this assessee. This amount was paid over by the said solicitor firm to the assessee and credited to her National Westminster Bank plc account no. 89485823, on 1st June 2005 . There is also dispute that, as noted by the Commissioner in his impugned order, "a part of the sale proceeds of Rs 32,06,728.87 was deposited in the HSBC account on 29.6.2005 and that the balance amount of 31,000 was transferred to SBI Bonds and fixed for 1 year". On these facts, learned Commissioner's stand was that the sale was completed after the assessee returned to India and the sale proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resident assessee's are concerned, only such income accruing or arising outside India can be brought to tax in their hands in India as is (i) received or is deemed to be received in India in such year by or on behalf of such person; or (ii) which is derived from a business controlled in or a profession set up in India. The assessee's case, according to the learned Commissioner, falls in first category i.e. income received in India. However, what the stand so taken by the learned Commissioner overlooks is the fundamental principle that it is the place of first receipt of income which is material for the purposes of applying the test in Section 5(1)(i). The place of receipt of an income is the place where it is received by the assessee in it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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