TMI Blog2015 (2) TMI 775X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion115H when the assessee has not satisfied the procedural and substantive requirements under Chapter XII A of the Income Tax Act? 2. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the assessee was eligible under Section 54F in respect of purchase of property held in the name of his wife? 2. The brief facts of the case are as follows: The assessee filed his return of income for the assessment year 1998-99 admitting taxable income of ₹ 21,19,890/-. The income thus returned consisted of interest accrued on/received from bank deposits. Hence, the assessee computed the tax due at the concessional rate of 20% as per the provisions of Section 115-E read with S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is not necessary to answer the second question of law admitted by this Court, which does not call for any consideration. 9. With regard to the first substantial question of law, both the learned Standing Counsel appearing for the Revenue and the learned counsel appearing for the assessee, fairly submitted that the first substantial question of law was already decided by this Court in favour of the assessee in respect of the very same assessee for the assessment years 1994-95 to 1996-97 in T.C.(A)Nos.1053 to 1056 of 2004 dated 07.02.2012. 10. In T.C.(A)Nos.1053 to 1056 of 2004 (Commissioner of Income Tax Vs. N.Sundarraman), this Court, by order dated 07.02.2012, while dealing with the issue whether on the facts and in the circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reign exchange, which amount had been invested mainly in bank deposits. From the records, it is seen that the respondent/assessee had been a 'Non-Resident for 12 years prior to his return to India. He has been in India only for 323 days during the previous seven years preceding the assessment year 1993-94. Therefore, the Tribunal was of the view that the respondent/assessee falls within the scope of Section 6(6)(a) of the Income Tax Act, 1961. So, the Tribunal held that the status of the assessee is Not Ordinarily Resident . It is pertinent to note that the assessee in his original return declared his status as Resident . Therefore, the Assessing Officer denied the benefit. The real status of the assessee cannot be denied merely the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of the taxation of the following categories of income derived by non-resident Indians. (a) investment income and (b) long-term capital gains. Section 115 E of the Act deals with tax on investment income and long-term capital gains. The Section reads as follows:- 115 E . Tax on investment income and long term capital gains Where the total income of an assessee, being a non-resident Indian, includes - (a) any income from investment or income from long-term capital gains of an asset other than a specified asset ; (b) income by way of long-term capital gains, the tax payable by him shall be the aggregate of - (i) the amount of income-tax calculated on the income in respect of investment income referred to in clau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld 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 held in detail in paragraph 28 and has 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. Under these circumstances, the assessee must be a Non-Resident Indian. This question was considered by the Assessing Officer, who had gone by the declaration of the assessee made in terms of sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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