TMI Blog1991 (6) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... a and was, therefore, liable to be excluded from the total income of the assessee, who was 'not ordinarily resident in India' in the relevant years ?" The assessee is an individual whose status is "resident but not ordinarily resident." In the return of income filed by the assessee initially for the assessment year 1970-71, he included therein Rs. 12,881 representing Malaysian pension received in India. Subsequently, a revised return was filed in which the assessee claimed that the amount of pension was not taxable, as the pension had been received outside India and later remitted to India. For the assessment year 1971-72, in Part IV of the return submitted by the assessee, the pension received from the Malaysian Government amounting to R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, the pension received was assessable on receipt basis, the Tribunal held, referring to a letter dated June 23, 1969, addressed by the Accountant-General of the Federation of Malaya to the Accountant-General, Madras, that that letter indicated an arrangement for payment in India and the circumstance that the pension of the assessee had also been assessed to tax in Malaya in the status of a non-citizen and non-resident would clearly establish that the pension of the assessee had been remitted to India by arrangement with the Accountant-General, Madras. In that view, the appeals were dismissed and that has given rise to these references on the common question of law set out earlier. Learned counsel for the Revenue contended that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der of the Appellate Assistant Commissioner that, during the calendar years 1969, 1970, and 1971 (January 1, 1969 to December 31, 1971), the Malaysian Government had assessed the assessee to income-tax on the pension, though in the status of a non-citizen and non-resident and deducted tax also in the amounts mentioned therein and this could be only on the basis that the pension had accrued to the assessee in Malaya and, therefore, assessable in the hands of the assessee there. In other words, the accrual of the pension and the receipt of pension to the assessee had already taken place in Malaya as, otherwise, it could not have been subjected to tax treatment by the Malaysian Government in the hands of the assessee in the status of a non-cit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e where the assessee was living, as a matter of convenience and that would not, in our view, constitute receipt of pension in India by the assessee, falling within section 5(1)(a) of the Act. We may now make a brief reference to the decisions to which our attention was drawn. CIT v. P. V. Raghava Reddy [1956] 29 ITR 929 (AP), subsequently affirmed by the Supreme Court in Raghava Reddi v. CIT [1962] 44 ITR 720 (SC), dealt with a case of a non-resident who acted as a commission agent of the assessee. In accordance with the terms of the agreement entered into between the commission agent and the assessee, a certain percentage of sale proceeds was payable as commission to the non-resident and, on the direction of the commission agent, the amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tories, but only a remittance from Malaya, after the receipt of the pension and subjecting it to tax, there. We are, therefore, of the view that this decision does not render any assistance. B. R. Sundaram v. CIT [1979] 117 ITR 960 (Mad) is the other decision to which our attention was drawn. There also, the assessee, a retired teacher of the Malaysian Government, was paid pension by that Government in India by the Accountant-General, Madras, in Indian currency, pursuant to a block arrangement entered into between the Government of India and Malaya. For the assessment year 1970-71, the assessee received Rs. 10,008 as pension and claimed that it was not taxable; but this was negatived by the Income-tax Officer and the Appellate Assistant Com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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