The assessee had an NRE account in an Indian bank. The assessee claimed exemption under S 10(4)(ii) on the interest income earned from NRE FD account amounting to Rs. 1.10 crores. The AO rejected the claimand  taxed the interest amount on the grounds that though the assessee was a non-resident earlier he became a person resident in India during the current year as per section 2(v) of the FEMA Act, 1999. CIT (A), up held the order of the AO .On appeal the Tribunal held that, since, the assessee has come and stays in India in the financial year 2014-15, the CIT (A) held that the assessee was a Resident and Ordinarily Resident in India for both income tax purpose and also under FEMA and therefore, he is not eligible for exemption under S. 10(4)(ii) as he does not fulfil the condition required under proviso to the said section, that is, he was a resident outside India in the relevant previous year 2014-15 under FEMA. Since the assessee has come and stays in India during the financial year 2014-15 for 283 days, his residential status under FEMA is a ‘person resident in India’ only. Therefore, the assessee is not entitled for the deduction under S.  10(4)(ii) of the Act. (AY. 2015-16)