Dr.S. Muthian v. ACIT (2021) 281 Taxman 640 (Mad.) ( HC)

S. 6(6) : Residence in India – Not-ordinarily resident -Accrual of income -Sale of stock option – Earlier employer – Matter remanded back to the Assessing Officer [ S. 5(1) (c ) ]

On appeal the assessee contended that he was  employee of Google India, returned salary income and claimed that as he came under NOR category for relevant year, he was not liable to pay tax on sale of stock option given to him by his earlier employer in USA and he was liable to pay tax only on income earned in India. Assessing Officer included income from sale of stock options as income of assessee, which was affirmed by the Tribunal  . Court held that since NOR status and purchase of stock option of assessee was a mixed question of fact and law, in interest of justice, in order to give one more opportunity to assessee, matter would be remitted back to Assessing Officer.  ( AY. 2010 -11)