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TMI Blog2022 (12) TMI 738X X X X Extracts X X X X X X X X Extracts X X X X ..... and are being disposed of by this common order, for the sake of convenience. 2. The Revenue is challenging the decision of the learned CIT(A) in holding that the interest income assessed in the hands of these assessees, being non residents, in all the three years cannot be brought to tax in India. 3. Facts relating to the cases are stated in brief. This is a second round of proceedings in the hands of both the assessees. It came to the notice of the Government that both the assessees are holding a bank account jointly in HSBC Bank, Geneva. It was noticed that some deposits have been made in this bank account during the years relevant to A.Y. 2003-04 & 2004-05. In the three years under consideration namely A.Y. 2006-07 to 2008-09 interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deleted the additions of interest income made in AY 2006-07 to 2009-10 on the reasoning that the same cannot be brought to tax in India. 4. We heard the parties and perused the record. There is no dispute with regard to the fact that the status of both the assessees under the Income tax Act is "Non Resident". Section 5(2) of the Income tax Act defines the scope of total income, i.e., the income which can be taxed in India in the hands of "non residents". The said Section reads as under:- "(2) Subject to the provisions of this Act, the total income of any previous year of a person who is a non- resident includes all income from whatever source derived which- (a) is received or is deemed to be received in India in such year by or on beha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of any debt incurred, or moneys borrowed and used, for the purposes of a business or profession carried on by such person outside India or for the purposes of making or earning any income from any source outside India; or (c) a person who is a non- resident, where the interest is payable in respect of any debt incurred, or moneys borrowed and used, for the purposes of a business or profession carried on by such person in India;". 6. There should not be any dispute that the issue in dispute in the hands of both these assessees has to be tested in terms of sec. 5(2) and sec. 9(1)(v) of the Income tax Act. No doubt that the income deemed to accrue or arise to a non resident in India is liable to be taxed in India. However, the que ..... X X X X Extracts X X X X X X X X Extracts X X X X
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