"Agent" in relation to a Non-resident - Definition / Legal Terminology - Income Tax

Who may be regarded as agent. As per section 163(1) of the Income tax Act 1961, For the purposes of this Act, Agent , in relation to a non-resident , includes any person in India- ( a ) who is employed by or on behalf of the non-resident; or ( b ) who has any business connection with the non-resident; or ( c ) from or through whom the non-resident is in receipt of any income, whether directly or indirectly; or ( d ) who is the trustee of the non-resident; and includes also any other person who, whether a resident or non-resident, has acquired by means of a transfer, a capital asset in India : Provided that a broker in India who, in respect of any transactions, does not deal directly with or on behalf of a non-resident principal but deals with or through a non-resident broker shall not be deemed to be an agent under this section in respect of such transactions, if the following conditions are fulfilled, namely:- ( i ) the transactions are carried on in the ordinary course of business through the first-mentioned broker; and ( ii ) the non-resident broker is carrying on such transactions in the ordinary course of his business and not as a principal. Explanation. - For the purposes of this sub-section, the expression business connection shall have the meaning assigned to it in Explanation 2 to clause ( i ) of sub-section (1) of section 9 of this Act. (2) No person shall be treated as the agent of a non-resident unless he has had an opportunity of being heard by the Assessing Officers as to his liability to be treated as such. DCIT MUMBAI Vs KEYSTONE REALTORS PRIVATE LIMITED AS REPRESENTATIVE ASSESSEE OF M/S. MAUSMI VENTURES LTD- 2023 (9) TMI 1205 - ITAT MUMBAI ..........................from conjoint reading of section 163 and section 246(1)(d) of the Act, it is unambiguously clear that before treating any person as agent a separate order has to be passed u/s. 163 of the Act, after affording opportunity of hearing to such a person on whom a liability in respect of a Non-resident is to be fastened