By Geeta Jani, Dhishat B. Mehta Chartered Accountants
fiogf49gjkf0d
Section 6, the Act – Benefit u/s. 6 to Indian citizens leaving India ‘for the purposes of employment outside India’ also applies to selfemployed professionals going abroad for business or profession.
Facts:
The taxpayer was an Indian citizen. He was a professional golfer. During the relevant tax year his stay in India was 167 days. While filing his tax return, the taxpayer claimed his residential status as non-resident.
According to the AO, the contention of the taxpayer that he had left India for the purpose of employment and therefore, should be entitled to the benefit under Explanation to section 6(1) of the Act was not valid. Hence, the AO concluded that the taxpayer could be treated as non-resident only if he was in India for less than 365 days during the 4 years preceding the relevant tax year, and was in India for less than 60 days during the relevant tax year. Since the taxpayer could not prove this, the AO treated him as resident during the tax year and accordingly, added the income which had accrued to, and received by, the taxpayer outside India .
Held:
The taxpayer is a professional golfer and a self-employed professional sports person who participates in Golf tournaments conducted in various countries. Relying on the decision of Kerala High Court in CIT vs. Abdul Razak [2011] 337 ITR 350 (Ker), the Tribunal held that to determine residential status under the Act, the term ‘leaves India for the purposes of employment outside India’ also means going abroad in the course of self-employment for own business or profession and accordingly, treated him as non-resident.
