While considering the maintainability of an application for advance ruling, an important question is whether the applicant is a non-resident. In Robert W. Smith, In re (1995) 212 ITR 275 (AAR) (1994) 77 Taxman 530 (AAR); Monte Harris v CIT (1996) 218 ITR 413 (AAR); (1995) 82 Taxman 365 (AAR); The AAR has ruled that the question of residence must be determined with reference to the previous year and, not with reference to a particular date.

Thus, if a non-resident takes up employment in India, the period from the date of taking of employment to the end of the financial year would be regarded as previous year. If the applicant is a non-resident in that period, the application would be maintainable. In another case Mani (A.S.) vs. CIT (1997) 227 ITR 380 (AAR), the AAR has ruled that, while calculating the number of days when the applicant was in India, the days on which he entered India and, the days on which he left India, should be included.