PRADIP J MEHTA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The Income Tax Appellate Tribunal, Ahmedabad Branch `A' has referred under section 256(1) of the Income Tax Act, 1961 the following questions for the opinion of this High Court :

(2.) The Income Tax Officer observed that, in view of the provisions of section 6(6) of the said Act, the assessee was required to fulfill either of following two conditions to claim the status of of `not ordinarily resident' :-

(3.) In the appeal preferred by the assessee before the Commissioner of Income Tax (Appeals) IV, Ahmedabad, the Commissioner (Appeals) by his order dated 13th August 1985 came to a finding that since the assessee who was a citizen of India rendering service outside India was in India for less than ninety days during the financial years 1979-80 and 1976-77, he was not resident in India in nine years out of ten years and therefore, his status was correctly taken by the Income Tax Officer as resident in India. The appellate authority, therefore, on the substantial aspect of the matter, confirmed the order of the Income Tax Officer while partly allowing the appeal in respect of exchange rate of interest, by directing the Income Tax Officer to take official exchange rate of dollars into rupees as per the Reserve Bank of India Bulletin and to re-calculate interest under section 217, if necessary.