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TMI Blog1986 (11) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... s a non-resident for the purpose of section 6 of the Act. During the accounting year he had made a gift of Rs. 2 lakh to his wife who at the material time was in India. The money was sent by demand draft and the assessee's wife had utilised the gifted amount in the business run under the name Bombay Automobiles, Vijayawada. On the valuation date the gifted amount was shown as a deposit in this firm to the credit of the assessee's wife. 3. The WTO invoked the provisions of section 4(1)(a) and included this amount in the assessment. The assessee had contended before the AAC that the provisions of section 4(1)(a) cannot be invoked in the case of a non-resident. He, however, held that the addition was properly made. The assessee is on further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of them remained outside India. The moment, the wife comes to India, it becomes taxable. Thus, the liability to tax would depend not on the assessee's movement, but on the movement of the assessee's wife. In another case he pointed out, where the assessee's wife leaves India and stays outside India, such an amount would not be included. We are unable to find any anomaly in the two illustrations given by Shri Satyanarayana. The movement of the husband or the wife determined their status as resident or non-resident. If the wife of the assessee who was non-resident, becomes resident, naturally the consequence would follow. Similarly, second illustration given by him if the assessee's wife goes out of India and becomes non-resident, certain ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ke the 1961 Act which limits and circumscribes the ambit of taxation of a non-resident, by section 5 there is no such corresponding provision in wealth-tax. The nearest provision of wealth-tax is only section 6 which excludes the assets and debts located outside India in the case of non-resident. Therefore, the question of deeming provisions of section 4(1) overriding any other provision like the charging section which was the situation in the reported case, does not arise in wealth-tax. 8. The assessee a non-resident, had made gift to his wife and the provisions of section 4(1) would be attracted whether the assessee is a resident or a non-resident. If the asset was to be located outside India, then it would not be included in his assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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