ITAT Delhi Judgment on Counting Days of Stay in India: Key Relief for Seafarers(ITA No. 1650/DEL/2024 | AY 2017–18 | Sanjay Bhaskar v. DCIT)

Background

Determining residential status under Section 6 of the Income-tax Act, 1961 is a critical issue for seafarers and NRIs. Even a small difference in counting days of stay in India can convert a Non-Resident into a Resident, leading to taxation of global income.

A recent judgment of ITAT Delhi in the case of Sanjay Bhaskar v. DCIT has provided important judicial clarity on how the number of days of stay in India should be calculated, which is highly relevant for seafarer tax residential status 182 days criteria.

Legal Provision: Section 6(1)(a)

As per Section 6(1)(a) of the Income-tax Act:

“An individual is said to be resident in India in any previous year, if he is in India in that year for a period or periods amounting in all to 182 days or more.”

For seafarers, this provision is usually the primary test to determine residential status.

Issue in Practice: Portal Calculator vs Judicial Interpretation

The Income Tax Department’s residential status calculator available on the official portal considers both the date of arrival and the date of departure as days of stay in India.

However, several judicial pronouncements-including the present ITAT Delhi ruling have taken a different legal view, creating a significant distinction for seafarers who frequently travel in and out of India.

Key Insights from ITAT Delhi Judgment

1. Period of Stay Must Have a Clear Start and End

The ITAT held that when computing the period for which an assessee is in India:

• The counting must begin from a particular date and end on a specific date

• Practically, this requires importing the words “from” (date of arrival) and “to” (date of departure), even though these words are not explicitly mentioned in Section 6 of the Income-tax Act, 1961

2. Date of Arrival Should Be Excluded

The Tribunal relied on principles laid down under the General Clauses Act, which provides that:

Where a period is to be reckoned “from” a particular date, the first day must be excluded.

Since computation of stay inevitably uses the word “from” (arrival date), the date of arrival in India must be excluded while counting the number of days.

This directly contradicts the automated logic used in the income-tax portal calculator.

Why This Judgment Is Important for Seafarers

For seafarers, even one extra day can change residential status and trigger:

• Taxability of foreign salary in India

• Scrutiny notices under Sections 133(6) or 142(1) 

• Litigation on residential status

This ITAT ruling strengthens the position that date of arrival should not be counted, offering legitimate relief in borderline cases under the seafarer tax residential status 182 days test.

Final Thoughts

The ITAT Delhi decision in Sanjay Bhaskar v. DCIT is a welcome and much-needed clarification, especially in an era where automated calculators are often treated as final. For seafarers, whose careers inherently involve frequent international movement, mechanical counting of days can lead to unjust tax exposure. This judgment reinforces the principle that law prevails over algorithms, and residential status must be determined based on established legal interpretation. Going forward, this ruling will play a vital role in defending genuine non-resident claims under the seafarer tax residential status 182 days rule.

Disclaimer

The above analysis is based on the provisions of the Income-tax Act, 1961, and judicial interpretation laid down by the Hon’ble ITAT Delhi in Sanjay Bhaskar v. DCIT. The views expressed are for general informational purposes only and should not be construed as legal or tax advice. Residential status and taxability depend on individual facts, travel history, and documentation. Readers, especially seafarers and NRIs, are advised to seek professional guidance before taking any tax position.

Need Help with Seafarer Residential Status or Tax Notices?

At Tax Harbour, we specialize exclusively in seafarer and NRI taxation, including determination of seafarer tax residential status 182 days, scrutiny notice handling, foreign income taxability, and compliance planning.

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• Sharad Mittal, Marine Engineer - deep understanding of seafarer sailing patterns

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