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TMI Blog1984 (11) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... India in May 1981. He brought into India moneys and assets whose value as on the valuation date stood at Rs. 6,41,800. The assessee claimed exemption with regard to this amount under section 5(1)(xxxiii). The claim was rejected by the WTO and the AAC on the ground that the assessee had not been ordinarily residing in a foreign country and that the benefit of the exemption will be available only to persons who have spent their lifetime abroad and who return to India for settling down permanently. 4. The only ground taken in the appeal is that the AAC erred in denying the exemption to the assessee. 5. It was contended by the learned representative for the assessee that the assessee was a non-resident from May 1975 to May 1981, that the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, it will be found that for claiming the exemption under clause (xxxiii), the following requirements should be satisfied : 1. The assessee must be a person of Indian origin ; 2. He must have been ordinarily residing in a foreign country ; 3. On leaving the foreign country, he should have returned to India ; and 4. The returning to India must have been with the intention of permanently residing in India. 8. The revenue does not dispute the fact that the assessee was of Indian origin. It was, however, stated that the exemption was intended for persons who had settled down in foreign countries and who were compelled to leave the foreign countries. In this connection, reference was also made to Circular No. 202, dated 5-7-1976 issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning as in the 1961 Act, specific provision has been made for the same in the 1957 Act as in Explanation 1 to section 6 of the Act. But the Explanation 1 to section 6 is not confined to section 6. A reading of the section would indicate that the meaning given to the term in the 1961 Act will generally apply to the present controversy because Explanation 1 occurs in section 6 which relates to the exclusion of assets and debts outside India. For the purpose of income-tax assessment, the assessee was a non-resident prior to his return to India. During that period, he was residing in a foreign country and there is no justification for not treating him as a person who was ordinarily residing in a foreign country. The assessee, therefore, satisfi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etter is in general terms mentioning about the returning to India. Further, the question has to be decided on an interpretation of clause (xxxiii) of section 5 and the matter cannot be decided on the basis of a letter written by the PRO. Reliance was also placed by the assessee on the Reserve Bank of India Manual relating to 'Exchange Control : Non-resident Indians'. It is stated that the Government servants deputed abroad on assignment with foreign Governments' or regional/international agencies, like the World Bank, International Monetary Fund (IMF), World Health Organisation (WHO), Economic and Social Commission for Asia and the Pacific (ESCAP) are non-residents. It is further stated in the note that such non-resident Indians become resi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n' might have been introduced to distinguish the return to India on a temporary visit to India. The assets brought to India during a temporary visit will not qualify for exemption. It will not, therefore, be correct to presume that the expression 'with the intention of permanently residing therein' will indicate that the exemption will be available only to those, who had permanently settled down in a foreign country. The Legislature in enacting the exemption, has not stated that the assessee should have settled down in a foreign country before his return to India. Similarly, no period of residence abroad has been specified for qualifying a person for the exemption. The present assessee happens to be a Government servant and the fact that he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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