Who may be regarded as agent.

1. (1) For the purposes of this Act, “agent”, in relation to a non-resident, includes any person in India—
   • (a) who is employed by or on behalf of the non-resident; or
   • (b) who has any business connection with the non-resident; or
   • (c) from or through whom the non-resident is in receipt of any income, whether directly or indirectly; or
   • (d) who is the trustee of the non-resident; and includes also any other person who, whether a resident or non-resident, has acquired by means of a transfer, a capital asset in India: Provided that a broker in India who, in respect of any transactions, does not deal directly with or on behalf of a non-resident principal but deals with or through a non-resident broker shall not be deemed to be an agent under this section in respect of such transactions, if the following conditions are fulfilled, namely:—
     • (i) the transactions are carried on in the ordinary course of business through the first-mentioned broker; and
     • (ii) the non-resident broker is carrying on such transactions in the ordinary course of his business and not as a principal. 2[Explanation.—For the purposes of this sub-section, the expression “business connection” shall have the meaning assigned to it in Explanation 2 to clause (i) of sub-section (1) of section 9 of this Act.]
2. (2) No person shall be treated as the agent of a non-resident unless he has had an opportunity of being heard by the 1[Assessing Officer] as to his liability to be treated as such.

¹ Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. 1-4-1988).

² Ins. by Act 32 of 2003, s. 68 (w.e.f. 1-4-2004).