Section 115C — the law in short
What the courts have decided on section 115C, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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Sitaldas K. Motwani v Director General of Income-tax (International Taxation)
High CourtHelps taxpayerValidity unconfirmed
My refund claim is late and the Commissioner has refused to condone the delay under section 119(2)(b) because I had no good reason for filing late — is that the right test?
No, that alone is too narrow. The Bombay High Court held that 'genuine hardship' in section 119(2)(b) must be construed liberally, and the authority is not confined to asking whether some substantial cause prevented a timely return. Refusing condonation can throw out a meritorious claim at the threshold, whereas condoning it means at worst that the matter is decided on merits. On the correctness of the refund claim the authority must see only that a prima facie case exists that is not bound to fail for an apparent defect, not prejudge the merits. The refusal was set aside and remitted for fresh consideration.
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Hari Gopal Chopra v CIT
Advance RulingHelps taxpayerValidity unconfirmed
I have come back to India after seven years working abroad and my NRNR rupee deposits and foreign currency deposits are still running. Do the non-resident concessions stop the day I become resident, and when is the interest taxed?
No, they do not stop automatically. The Authority ruled that Hari Gopal Chopra, who returned to India on 24 May 1996 after employment in Zambia, remained entitled to the Chapter XII-A benefits under s.115H after becoming resident, provided he filed the written declaration that section requires with his return. It also ruled that interest on his non-resident non-repatriable rupee deposits was taxable only in the year the deposits matured, because nothing had been credited to his account before then, and that interest on his foreign currency deposits with a scheduled bank was exempt under s.10(15)(iv)(fa) for assessment year 1997-98 and later years for which he was found resident but not ordinarily resident. The ruling binds only the applicant.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.