March 2023
Where the assessee mentioned residential status in original return as resident in India and in return filed under section 153A mentioned residential status as Non-resident which was uncontroverted fact, then merely mentioning the residential status as resident in original return of income, does not make the assessee a resident in India. Once the assessee is a non-resident then income or deposit in foreign bank account is not taxable in India
By Jagdish Punjabi, Chartered Accountant
Devendra Jain, Advocate
Reading Time 4 mins
60 Ananya Ajay Mittal vs. DCIT
ITA Nos. 6949 & 6950/Mum/2019 and
576/Mum/2021
A.Ys: 2010-11 to 2012-13
Date of Order: 29th December, 2022
Where the assessee mentioned residential status in original return as resident in India and in return filed under section 153A mentioned residential status as Non-resident which was uncontroverted fact, then merely mentioning the residential status as resident in original return of income, does not make the assessee a resident in India.
Once the assessee is a non-resident then income or deposit in foreign bank account is not taxable in India
FACTS
The assessee in previous year relevant to A.Y. 2008-09 went to the US for studies. A search and seizure action was carried out in the case of the assessee’s father when during the course of search certain documents containing details of foreign bank account of Ananya Mittal. This foreign bank account was not declared by the assessee in the return of the income filed by him. In the course of post search assessment proceedings it was submitted by the assessee before the AO that the assessee was in the US for his post-graduation was to stay in there for four years. As a student pursuing studies in the US, it was mandatory for him to open a bank account in the country. All expenses of the assessee in USA were exclusively borne by a family friend of Mittal family, Dr. Prakash Sampath based in the USA. The
