When the Funds remitted by Non Resident to India are held to be not taxable

Funds remitted by NR to India out of income accrued outside India aren't taxable in India

[2015] 57 taxmann.com 262 (Hyderabad - Trib.)

IN THE ITAT HYDERABAD BENCH 'A'

Deputy Commissioner of Income-tax, Circle-16 (1), Hyderabad

v.

Madhusudan Rao

Section 5, read with sections 68 and 69, 69A and 69B, of the Income-tax Act, 1961 - Income - Accrual of (Conditions precedent) - Assessment year 2011-12 - Whether provision of section 5 does not permit taxation of amounts remitted to India from sources outside India which are not incomes under provisions of Act - Held, yes - Whether where assessee, an NRI, received a certain sum from his own account outside India through proper banking channels with necessary statutory approvals, income could not be said to accrue or arise in India - Held, yes - Whether provisions of section 68 or 69 would be applicable in case of non-resident only with reference to those amounts whose origin of source can be located in India - Held, yes - Whether assessee being a non-resident invoking provisions of sections 68 and 69 had its own limitations - Held, yes - Whether since assessee had remitted his own funds abroad to India, said inward remittance could not be considered as unaccounted income of assessee under sections 68 and 69 - Held, yes - Whether where assessee transferred his own fund, said fund could not represent his unexplained investment under section 69A - Held, yes [Paras 16 - 19] [In favour of assessee]

Circulars and Notifications : Circular No.5, dated 20-2-1969