2015 (10) TMI 1066 - AT - Income Tax

Residence in India - addition treating the assessee in the status of non-resident - stay in india - Held that - Since the present assessee had stayed in India less than 182 days he was not resident of India for the assessment purpose on the claimed receipts form his outside employment. We thus find that the first appellate order on the issue is comprehensive and reasoned one and hence does not warrant any interference therewith. The same is upheld - Decided in favour of assessee.

Summary

Issues:
1. Whether the deletion of an addition of Rs. 4,77,12,271 made by the AO by the Ld. CIT(A) was justified based on the assessee's residential status.

Analysis:
The Appellate Tribunal ITAT DELHI addressed the issue of the revenue challenging the first appellate order that deleted the addition of Rs. 4,77,12,271 made by the Assessing Officer (AO). The AO had added this amount to the total income of the assessee, a professional golfer, based on his residential status. The AO held the assessee as a "resident" as he could not prove that he was not in India for 365 days during the four-year period preceding the relevant year. However, the Ld. CIT(A) treated the assessee as a "non-resident" after detailed analysis and considering the provisions of law and relevant decisions. The Ld. CIT(A) concluded that the income accrued and received by the assessee outside India was not taxable in India. The Tribunal examined whether the assessee could be considered to have left India for employment purposes and whether he should be entitled to the benefit of a specific provision under the Income Tax Act.

The Ld. CIT(A) considered the assessee, a professional golfer, as a self-employed professional participating in golf tournaments abroad. The Tribunal upheld the Ld. CIT(A)'s decision based on the interpretation of the term "employment" and the assessee's status as a self-employed individual. The Tribunal referred to the decision of the Hon'ble Kerala High Court in a similar case to support the finding that the assessee's stay abroad for employment included self-employment activities like professional sports. The Tribunal reiterated the provisions of the Income Tax Act regarding an individual's residence in India and emphasized that since the assessee stayed in India for less than 182 days, he was not considered a resident for assessment purposes on income received from his employment outside India.

The Tribunal concluded that the Ld. CIT(A)'s order was comprehensive and reasoned, upholding the deletion of the addition to the assessee's income. The Tribunal dismissed the revenue's appeal, affirming the Ld. CIT(A)'s decision regarding the assessee's residential status and the taxability of income earned outside India. The appeal was ultimately dismissed, and the order was pronounced in open court on 15th April 2014.