9911796707
TMI Blog2000 (8) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... 2, dated September 10, 1996. The questions referred to the High Court in those cases were under the Income-tax Act as well as the Wealth-tax Act. Being of the view that the second question in I. T. R. No. 109 of 1992, viz., "Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the assessee is entitled to exemption of the interest earned on the deposits in Non-resident (External) Account in terms of section 10(4A) of the Income-tax Act, 1961 ?" is germane and would cover all the other questions referred to it, the High Court dealt with and answered that question by the impugned common order in the negative, i.e., in favour of the Revenue and against the assessee. The appellant, though of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question No. 2 in the negative, against the appellant. Mr. C. S. Vaidyanathan, learned senior counsel appearing for the appellant, invited our attention to paragraph (c) of sub-clause (iii) of section 2(p) of the Foreign Exchange Regulation Act and argued that stay of a person with his or her spouse referred to therein postulates not a mere temporary or short-term stay but a somewhat permanent stay. The High Court did not consider the nature of the stay for the purposes of section 2(p)(iii)(c) of the Foreign Exchange Regulation Act and, therefore, erred in treating the appellant as a resident for the purposes of section 10(4A) of the Income-tax Act, 1961. Mr. Ranbir Chandra, learned counsel appearing for the Revenue, contended that in vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as would indicate his intention to stay in India for an uncertain period ; Explanation.---A person, who has, by reason only of paragraph (a) or paragraph (b) or paragraph (d) of sub-clause (iii) been resident in India, shall, during any period in which he is outside India, be deemed to be not resident in India ;" Paragraph (c) of sub-clause (iii) of the Foreign Exchange Regulation Act deals with stay with his or her spouse. Shorn of immaterial words section 2(p)(iii)(c) will read thus : a person resident in India means a person, not being a citizen of India, who has come to, or stays in, India, for staying with his or her spouse, such spouse being a person resident in India. A plain reading of paragraph (c), extracted above, makes it evi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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