Law:

Section:

Section 163 of the Income-tax Act, 1961 - Non-residents - Statutory agent - One K, a non-resident Indian, purchased some agricultural land in India - According to K's lather S (the assessee), annual income of said land was spent by him on his household expenses and no part of it was paid to or received by K - Whether S could be treated as agent of K in terms of section 163(1)(c) - Held, yes Facts One K, a non-resident Indian, purchased some agricultural land in India. According to K's father S, the assessee, the annual income of the land was about Rs. 3,000 and the entire amount was spent by him on his household expenses and no part of it was paid to or received by K. The Tribunal held that S was not covered by clause (c) of sub-section (1) of section 163, and, hence, he could not be said to be the agent of K for the purposes of the Act. On reference by the revenue: Held Section 163(1)(c) states that 'agent' in relation to a non-resident includes any person in India from or through whom the non-resident is in receipt of any income whether directly or indirectly. In the present case, the income from the land in question was undoubtedly that of K. If instead of taking it, he chose to let his father utilise it, it could not but be treated as an indirect receipt of the said income by K. Accordingly. S was covered by clause (c) of sub-section (1) of section 163, and, as such, he was agent of K for the purposes of the Act. The order of the Tribunal was, therefore, set aside. L.K. Sood for the Applicant. JUDGMENT Sodhi. J.-Kirpa Singh, a non-resident Indian, purchased three acres of agricultural land in village Rahimpura. According to his father…

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