K.Ramullan vs Commissioner Of Income Tax, Cochin

The Supreme Court examined whether the appellant-assessee qualifies as a resident outside India under Section 2(q) of the Foreign Exchange Regulation Act, 1973. The Court held that the High Court erred in its interpretation of Section 2(p)(iii)(c) of FERA, which pertains to residency based on the nature of stay with a spouse. The Court concluded that the appellant, despite his long stay in India, is entitled to the exemption under Section 10(4A) of the Income Tax Act, 1961, as he is not a resident in India for tax purposes.