K. RAMULLAN vs COMMR. OF INCOME TAX, COCHIN

The Supreme Court addressed whether the appellant, a Malaysian citizen of Indian origin, 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 staying with a spouse in India. The Court concluded that the appellant is indeed entitled to the exemption under Section 10(4A) of the Income Tax Act, 1961, thus reversing the High Court's decision.