COMMISSIONER OF INCOME-TAX Vs. SHARDA AJMANI

JUDGEMENT

(1.) THE question which falls for determination in the reference made to this court under Sub-section (1) of Section 66 of the Indian Income-tax Act, 1922 (hereinafter referred to as "the Act"), is as follows : "whether, on the facts and in the circumstances of the case, Shrimati Sharda Ajmani should be taxed as a resident of the taxable territories for the assessment years 1960-61 and 1961-62 ?"

(2.) THE facts giving rise to this question may briefly be recapitulated.

(3.) THE assessment relates to the years 1960-61 and 1961-62. The assessee is Smt. Sharda Ajmani, wife of Shri Ajmani, who in the relevant previous years was working as First Secretary to the Indian Embassy at Baghdad and during those previous years, she was staying with her husband at Baghdad. Smt. Sharda Ajmani was a partner in the registered firm of M/s. County Weavers, Amritsar, having a 12 as share in the rupee. Besides that, she had some interest income. It is an admitted fact that the situs of the source of income was in the taxable territories and the income accrued and arose in the taxable territories. The contention of the assessee before the Income-tax Officer, the Appellate Assistant Commissioner and before the Tribunal, was that in respect of the diplomatic personnel, it should be held that all the members of the staff of an embassy would be considered as residents for taxation purposes and that the family members of the diplomatic staff working abroad would be entitled to the same privilege. The Income-tax Officer and the Appellate Assistant Commissioner did not accept this contention and assessed Smt. Sharda Ajmani as non-resident. On appeal, however, the Tribunal held that the assessee should be deemed to be a resident of the taxable territories for taxation purposes and this is how, on the request of the Commissioner of Income-tax, the above mentioned question of law has been referred to us for our decision.