Law: Income Tax Rules, 1922

Section: Ss. 4 (1) (b), 4-A

  Income-tax Act (XI of 1922), Ss. 4 (1) (b), 4-A-Question of residence-Becomes determinable at close of `previous year--- Words "in any year if he is in British India in that year" in S, 4-A-Refer to `previous year' and not `assessment years--- Maintenance of dwelling house outside British India-Immaterial.   Radhashyam Agarwala v. The Commissioner of Income-tax, East Pakistan (Central Secretariat) Dacca 1960 P T D 371; Wallace Brothers & Co. Ltd., v. The Commissioner of Income-tax, Bombay City and Bombay Suburban District 1.960 P T D 934 and The Commissioner of Income-tax, Madras v. V. E. K. R. Sayumiamurthy (1946) 14 I T R 185 rel.   Income-tax Act (XI of 1922), Ss. 4 (1) (b), 4 A--Assessee leaving British India on 26th December 1946, after retirement from Government service---Status as -`resident and ordinarily resident'- Income accruing and received in United Kingdom-Taxability in British India in assessment year 1947-48-Validity.   The assessee retired from Government service, and left British India on 26th December 1946, for the United Kingdom from where he did not return to British India. He was treated as `resident and ordinarily resident', by the Income tax Officer for the purpose of assessment year 1947-48. Thus the Income-tax Officer, included in the assessment a sum representing assessee's foreign income which accrued and arose to him in the United Kingdom. The assessee, unsuccessfully, appealed to the Appellate Assistant Commissioner, and then, to the Appellate Tribunal, on the ground that he never received such income within British India. Upholding the orders of the lower authorities, with regard to the status of assessee:   Held, that the assessee was resident in British India up to the 26th of December, 1946 during the accounting year 1946-47 and as he also maintained a dwelling place therein, he was resident in British India as defined in section 4-A (a) (b) and (ii), and conse quently under section 4 (1) of the Income-tax Act his total income during 1946-47 is to include income, profits and gains from whatever source derived including those which accrued to him without British India…