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Section 163-agent of non-resident

10 May 2007

how can a non-resident,who has acquired by means of a transfer,a capital asset in India,be an agent of another non-resident?

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3 Replies

Amit Jugia (CA Practice ) (16 Points)
Replied 10 May 2007

hi ridhima,

any person whether resident or non resident can be agent of a non-resident u/s 163.

Following persons can be treated as agent of non-residents:
1. any person from whom NR is in receipt of income;
2. any person in employment of the non-resident.
3. a non-resident acquiring a capital asset in india by means of transfer.

these persons are specified as per section 163 of income tax act.

i m also not very clear abt. the logic but it may be that non-resident may have acquired capital asset on behalf of another non-resident for whom he can be treated as his agent.

if it is right, pls confirm and if it is wrong pls do forward the ans. to me as soon as you get right ans.

bye,
amit

Mohan (25 Points)
Replied 10 May 2007

hi,
a non resident can be held as an agent of the non resident under the provisions of 163. it was held in the case A.P. Damodara Shenoy v. CIT [1954] 26 ITR 650 (Bom.). but he might have an further agent who can file return on his behalf.
for better clarification u can reffer to that case.

Shiv Prakash (164 Points)
Replied 10 May 2007

it was held in the case A.P. Damodara Shenoy v. CIT that a NR can be an agent of another NR plz go through this case. U can search for this case on taxmanns webpage