X, an individual left India for the first time during 2011-12 for starting his own business in U.K. During the financial year 2011-12 he stayed in India only for 88 days. The Assessing officer treats him as resident for AY 2012-13 as his stay is more than 60 days in the current previous year and more than 365 days during the four previous years preceding the current previous year. Will you accept the contention of the Assessing Officer?
Answer:
The contention of the AO is wrong. Employment includes self employment as held in "O.Abdhul Rajak Vs CIT". Hence, the requirement of 182 days is to be satisfied as the assessee left India for the purposes of employment outside India. [Note the phrase used is "for the purposes of employment" but not "for employment purpose"].
