C.I.T., MADRAS vs K. S. RATHNASWAMY

The Supreme Court held that under Section 4A(a)(ii) of the Indian Income Tax Act, 1922, the status of an assessee as a resident or non-resident is determined by whether they maintain a dwelling place in India. The Court found that the assessee, who had minimal presence in India and stayed in family property as a guest, did not maintain a dwelling place, thus justifying the classification as a non-resident. The appeals by the Revenue were dismissed, affirming the lower courts' decisions.