N.R.S. Ganesan, Judicial Member. - These appeals, one by the assessee and the other by the revenue, are directed against the orders of the CIT (Appeals) II, Hyderabad, and pertain to assessment years 2001-02 and 2000-01 respectively. For the sake of convenience, we heard these appeals together and we dispose of the same by this common order. Let us first take up ITA No. 940/Hyd./2005 filed by the assessee for assessment year 2001-02.

2. The first issue that arises for consideration is regarding status of the assessee. Shri G.V.V.S. Murthy, learned counsel for the assessee, submitted that the assessee claimed before the Assessing Officer the status as Resident but not Ordinarily Resident. However, the Assessing Officer treated the assessee as a Resident. The learned counsel submitted that the assessee left India on 27-10-1989, for taking up employment in the USA. According to the learned counsel, the assessee worked with various American companies till 5-7-1993 and joined Microsoft Corporation, USA, on 6-7-1993. According to the learned counsel, the assessee returned to India on 1-5-1999 and joined Microsoft India (R & D) Pvt. Ltd., an Indian subsidiary of Microsoft Corporation,