The Supreme Court dismissed the plea of a Non-Resident Indian (NRI) who was stuck in India due to Covid-19 seeking direction for treating him as an NRI for Financial Year 2020-21.
The petition prayed for a direction from the Ministry of Finance to consider a representation for treating him as an NRI for FY 2020-21. The petitioner submitted that he arrived in India on March 6 and was compelled to extend his stay in India, later he was able to leave the country on October 5, by that time his stay in India (Financial year 2020-21) had already crossed a period of 182 days due to the lockdown imposed in India.
As per Section 6 of the Income Tax Act, the petitioner qualifies to be a resident in India and liable to be taxed on his global income in India. The petitioner said he is an NRI, presently based in Dubai, UAE (Tax neutral state), working as an Accounting Manager with Kuber Trading FZE.
Advocate Abhishek Singhvi on behalf of the petitioner submitted that the bubble system created was only available after 91 days of the start of the April 2020 financial year, now a benefit of 91 days is not being given.
The bench, comprising Justices Uday Umesh Lalit, S. Ravindra Bhat, and Bela M. Trivedi, stated that there was a transport bubble system created for such passengers, which the petitioner could have availed.
“We won’t entertain such petition unless and until you show us that you are completely powerless and confined to the shores of this country, then only we will consider the matter from the standpoint of Article 32 but if this is the situation, the transport bubble was created from July 1 onwards and yet you chose not to avail, that is the matter to go into individual cases,” Court said.
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