VittSphere ONE Calculators Blog CA Prabhakar Kumar · FCA · ICAI 560762
Case lawHigh Court › DIT v Manoj Kumar Reddy Nare
High CourtHelps taxpayers.6s.6(1)s.6(1)(c)

DIT v Manoj Kumar Reddy Nare

I work abroad on deputation and came back to India for a few weeks. Do those days count against me under the 60-day test?

I work abroad on deputation and came back to India for a few weeks. Do those days count against me under the 60-day test?

No, on these facts. The Karnataka High Court declined to interfere with a concurrent finding that, excluding the time during which the assessee was visiting India, he was not in India for the requisite 60 days, so he was a non-resident and could not be taxed as a resident under s.6(1)(c). The Revenue's appeal was dismissed for want of a substantial question of law.

Decided by the High Court (High Court of Karnataka — V. G. Sabhahit and Ravi Malimath, JJ.) on 2011-06-20, reported as [2011] 12 taxmann.com 326 / 201 Taxman 30 / 245 CTR 350 (Kar.)(HC); IT Appeal No. 431 of 2009. It bears on section 6, section 6(1), section 6(1)(c) of the Income Tax Act 1961, in Residence & Treaty Benefit and Salary & Perquisites matters.

Read this before you cite it. The boundary days are contested, not settled. Against the Tribunal line excluding the day of arrival stands the Authority for Advance Rulings in Petition No. 7 of 1995, In re [1997] 90 Taxman 62 (AAR - New Delhi), 8 February 1996, which holds at para 7 that both the days on which the person entered India and the days on which he left have to be taken into account, and that a part-day counts because the person was in India on that date however short the period. That is a ruling of the Authority and not a judgment of a court, and it binds only the applicant, the transaction and the Commissioner in that case - but it is the only reasoned decision traced that addresses the departure day and the part-day, and it contradicts the arrival-day line squarely. Separately, a Bangalore Bench has read the neighbouring provision the other way: in Binny Bansal v. DCIT [2026] 182 taxmann.com 226 (Bang.)(Trib.), 9 January 2026, it was held that Explanation 1(b) to s.6(1) applies only to a person who is already non-resident and not to one who was resident in the immediately preceding year, and that Explanation 1(a) applies only in the previous year in which the citizen actually leaves India. This judgment was relied on before the Assessing Officer in that case but does not appear in the Bench's own record of decisions dealt with. A Tribunal cannot displace the High Court of its own State, but an officer may produce that order. Note also that this judgment does not construe Explanation 1(b): what it approved was the exclusion of visit days from the 60-day count in s.6(1)(c).
Still good law. It is followed on what it actually decides. Sanjay Bhaskar v. DCIT [2026] 182 taxmann.com 66 (Del.)(Trib.), 30 December 2025, records this judgment as followed at para 12, and Pradip Kumar Joshi v. ITO [2021] 133 taxmann.com 283/[2022] 192 ITD 577 (Ahd.)(Trib.), 29 October 2021, is to the same effect and is quoted in it. But a correction has to travel with that. At paras 10 and 15 the Delhi Bench excludes the day of arrival 'as held by the Hon'ble Karnataka High Court in the case of Manoj Kumar Reddy'. This judgment holds no such thing. It has been read end to end - seven paragraphs - and the only question it frames is whether the period of a visit to India is excluded in computing the sixty days under s.6(1)(c); it does not mention the day of arrival and it does not mention the General Clauses Act. The arrival-day reasoning, resting on s.9 of the General Clauses Act, is in the Tribunal order this Court declined to disturb, Manoj Kumar Reddy v. ITO [2009] 34 SOT 180 (Bang.) at paras 3.24 and 3.25. Cite that order for the arrival-day convention, and say that no High Court has decided the point.

Why it matters

It is the only High Court decision located on the day count under s.6(1)(c) for a person working abroad who returns to India on a visit, and it is the appellate history of the Bangalore Tribunal order that later day-count orders rely on. That appellate history is now the more important half. The Tribunal order it affirmed is the one that reasons out the exclusion of the day of arrival, by importing the word 'from' and applying s.9 of the General Clauses Act, and later Benches treat this judgment as the authority for that exclusion precisely because it confirmed that order - although the arrival-day reasoning is the Tribunal's and not the High Court's own. It also shows the shape the argument has to take: the count is a finding of fact on material, and a High Court will not disturb it unless it is perverse. The Court recorded that the assessee remained an employee of the Indian company while working in the United States on deputation and held that this did not displace the concurrent finding.

Binding within that High Court's jurisdiction. Persuasive elsewhere.

Not yet CA-verified. This entry was found through the sources listed under the Sources tab, and the summary reflects what those sources say. Nobody has yet read the full judgment and signed it off. Check the source before relying on it.

Read aloud by your device. Press again to stop.

Related

Other authorities on the same sections.

Used in these worked examples

Notice situations where this decision carries one of the steps.
I have counted my days three ways and got three answers - which one do I file on?I left India in June for a job abroad and came back for two months in the winter. My day count comes to somewhere between 119 and 122. Am I resident for the year, and what does that pull into the Indian return?