Karnataka High Court
The Director Of Income Tax vs Sri Prahlad Vijendra Rao on 8 November, 2010
Bench: Manjula Chellur, Aravind Kumar
IN THE HIGH COURT OF KARNATAKA AT BANGALORE
DATED THIS THE Sm DAY OF NOVEMBER
PRESENT "k'" "
THE HON'BLE MRS. JUSTICE MANJULA__C.I§I{3f]ZLUR"v
AND
THEHmm1EMRJUmKmImwmmOfiEmR3'C
ITA No.838g.éO_Q9;%.V 'I T
BETWEEN: A I
1. THE DIRECTOR OF ;{NCOME"'"fA}i.
INTERNATIONAL TAXATION V. " '
INTERNATIONAL TAXATION....* _ _ ..
RASHTROTHANA BHAVAN, "
NRUI>ATHUN.GA_ROAD, _
BANGALORE.
2. THE INCOME 1irAx OF'v}?ICER___ _
INTERNATIONAI: TAXATION
WA:'RI;)--.1{3)'-",--~.._"- ' -
INTERNATIONALTAXATION,
RASHTROTHmNA~B;IAvAN,
NRUPATIIUNGA-.ROAU~;"
BANGALOW, '
. ---------- ...APPELLANTS
'(EY"SRI'....ARAV:INO FOR SRI. M.V. SHESHACHALA ADV.,)
3 SR1. VIJENDRA RAO,
'-303, 111711 "CROSS,
' ,f*OI"F'*-?,5TH MAIN.
- T ;J,R.NAGAR PHASE «I,
-- BANGALORESSO O78.
... RESPONDENT
" "(ISY SR1. A SHANKAR AND SR1. M. LAVA, ADVS.,)
THIS ETA FILED UNDER SECi'TI{}§' 260%. SF I.'2';;§s(3T,
I96 1 AREENG C313'? 01? QRDER EATED 25.0fi.2W'3 E'A$8E~§)
E? rm 1%. 2 1371'ERG-J 2993, mm: mm A3SEsS£d}i3fi.'?~Y'E$E'
2905-2i306, pmms 'I'IiA'£' mm HQNELE cmmfr 332:,
PLEsEn*m .
i.) mmtxmm THE
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in? Atww THE A1=1>mL ANi3%{%$E'r»A'AsmE A
THE camera 1=A%r:1>_. 3?; lira:
mxmmnz IN rm 113?;?1Ef$firi_2G'93,"'
DATED 26.€I6.2'0fi9, COHFEH; GREIER 6:?
mg APz=mLaz'E_ cgmmaimmk
camm THE '<.:a;1§1>3_1~z ,?Aa15EI::. BY' THE
mconm TAX OFf!?f'IC}.¢:;R;' wmmafiema
mmrxcx, ,wARn¢,1,{,3},., aA::Gm,s1?:I«,;--- "m THE
Ifl'rEIEE3':'§;:'§-*v.,;u2f'm3.E';~..: _ - '
mm rm 'r:.;::'Mz1"-3G <."m'FQR"A3;>m%:<3H BEFGRE mm
mum mm .3 DELIVEREfi THE
Vv af rim ortier paaaed by tlm
Appenam Tribunal in rm
§a.%ki237}§%§i:3f2ms dawfi 26.m.m§
A. Ass-mesa 1% an azfi £01' 12%
Ymr 2G%G6 remm sef kmma wag fihé
rztfi : m' tk status sf "firm.-zm1d£:z1" t" desularm" mtal
V " itzmma of Rs.85,23Gi-. Tbs saw was pmseaseci uzzdcr
-
Smticm 143(1) Wfnlch muim 5;: refimci Meier issued. Suhsaquezxtly ii was aelmnfi for notice madezr Secmularn 143%) mm to be rmpame tn the said muice and ftxrzajalmd tbs demila ef.11?:§ Win f % prevfi years which 148 days. Siam __he a new-
residsnt fresh nsitéce cormflering the: rwly 051% cama by way uf mlary am as Ra.1€),O{},1.31/- was 5(2) bl smzh mm was bmught within and dmm& was rafmafi amrdi.2@ AA _ 3; Z 'rm asscsaae beam -:
dated 28.12.2607.
by the sam A . an apmal befire Cnmmm" iomr af I Tax ms N<>.43{R~19{Cfl'[A}IViQ7-98.. The Appellate " A.z1tI"1o:'7Zty mmsama the mntentéorm 1-ma' by the aasaaasae and an fa-gm fauna that apwlzanz 11% aarnmi My miary to the aim': of $22,234 (in zmian Rs2.10,flf3,13Li[-j and whzk rwfiizxg wkm: he stayeé aumide Erma fer a > and; cam in mnchmirsn that tha asawsas was cmmida' 3¢".aaia:i« _it ixvas mmptea and £3; such §gm}mfi§ pi raged
4. I by the saw permwd Appeum Tribunal ix: rm Tribunal aonsidemd seotspn 5(2)(a)_:' of iiémm Tax Act mm and an contentinrm 323% that 'M1397 on aacmal basim as per Scene' :1 15 V has been palfl to the assesses 1% an the work dkchargw. by the aaaeaam cutside it was mt a 'X: the asamsw fin' the carriaad can in Izfiia and as such the menu: at' thatimtfluaxmfwrfimfiwbankamuntaf 1:11: agamsee zxazmet, 2?. eamifimfi at braugfit tvithin ttrxa demtfim ef 'saJa1y" as dafizm eizxm may 5 or w'ithi;r1 amps of fatal izzamnw as def"1r1e& I5 af the Act on accrual basis and 3 K the wrifmitinna of the
26.Q6.2Q0@'
5. 1: as abazasgm me pmmu: gym: W » §;g:;geming tlmt aubataxzfial tlzw appeal 5; % mm adweam ' 'A aflcer the orders uh}; 311:1 after am' tr: firm cxmtentions raised, was are z;f-- 3,-W' timt 't§are 'm m substanfiml éf; kw inzmived in flzis 3&1 far being . . [ rm-muxma and adjtxdicabed &r the fallowirzg reascms.
a} 'I"hse mwnue doea mt &*mpute that assmsaaa had. we-rlmci as a Cfiwf E on thc heard ef a ship Izxeiargflxg be his empbyar §
-ma. Live Steel: Tramport & Tradingf K Company", Kuwait. and aurm the periad the aaaassea had stayed oumidg--Ez3§§afi~. ~ far 3 ya:-ind af W5 £33338 anfl the . _ was «aarnefi by him wag .
'mark flimchfiffi by him ":
Imxa.
b; The err €5P?Eé£3s.3, in aha case ef err kys.5»¢a: Wadlxwan rem:-ted W ITRj2n%¢*<:%<9€>1WhmiI1 it has mm by the "mt: rmiéegrgt; ad 3 mm' } fer germs' as % €°r~W1' swim Wm' amp away £2-am the f:..*'dmn_' Z £' i'1ur@ the rele-mt aacauxtttlng' India and was not mm' While mmwerirzg the . ,c1ti.T'aé%'i;i«r:'n 5§.é;f1aw mm urxder with refwmw aw Quxn; m cm mid case: 2: has aha tzmmeaanaxywhicmamnmixz wiil alarm-. be mardesd as irmmc in india and not athezi. The }:a'irx:%qa1ae1aiddzawni2:1fl2.esa.idt:aseis squarsaly appfimble tn the facts of pxmant * pmind which is =é1'22$§i:i¢ -':'.J:ie::. %sm:r¢.g%g§%A awe also;
§\ Q} The: orfmuk sf applying the defnificsn af Secticm 5£2]{b) wuuid be auczh irwcma ,, £5 murseé in India far the sumwinaes ti) {Inzier Section 15 of haais sahly he-comm taxahisa §Sf'--
Whether it is dfily taxablas b3r;imp:i:«..aaag5 ifsersviom are mmie wig L iaiich ixmzm Section £-Mifiii) has been ta1cen_.:}.¢teL6f ' the subaiantiai quwtxian revetzue. Ayyfim' the said prin€:ip}m the present was and number cf days the asaessm autskie India as ezxtracted in osrciar when taken inm cozmidaratiun it V _ ammc that asacsseat was Wesrkting autsida India " " :&3r a pwiaé (if 325 days and the fimnme in qumfian wnzndbyawmgmkmamtawmedmindiamfifimt éaemed as have aocruw in Imia. As auc2;f.:rm mrztenfian Gfflflfi revmze caxzrxnt be amoepwd. f A'
3. In View af the ahmae d?1s::r;s:3i'§:§a§\ '<'"tft;iej & L is aismm' w as dewid c:f1mr;tt.a' . aragaaa; _ (EH