9911796707
TMI Blog2023 (8) TMI 1175X X X X Extracts X X X X X X X X Extracts X X X X ..... but it is established that such individual was domiciled in Sikkim on or before 26th April, 1975, shall be entitled to the benefit of exemption. HELD THAT:- As we notice that the assessee though is not a Sikkimese and is name is not appearing in the Register of Sikkim but as per the residential certificate issued by the District Collector, East District, Gangtok, he is found to be domiciled in the state of Sikkim on or before 26th April, 1975 and, therefore, assessee is well covered by the decision of the Hon ble Supreme Court and thus, is entitled to exemption u/s 10(26AAA) of the Act for the income earned from carrying out the activity in the State of Sikkim. - Dr. Manish Borad, Hon ble Accountant Member For the Assessee : S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es for necessary verification. 4. We have heard rival contentions and perused the material placed before us. We notice that the assessee is engaged in trading business. During the FY 2011-12, it deposited total sum of Rs. 26,60,661/- in the savings bank account held with Central Bank of India, Gangtok Branch. Based on this information, notice u/s 148 of the Act was issued. During the course of assessment proceedings, the assessee claimed exemption u/s 10(26AAA) of the Act. However, at that point of time, since the matter was sub judice before the Hon ble Supreme Court, the ld. Assessing Officer added the total amount of deposit in the bank, as income of the assessee. Appeal before the ld. CIT(A) did not bring any relief. 5. Before us, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lanation in order to avail the benefit of the exemption under Section 10(26AAA) of the I.T. Act, 1961. iii) The Union of India shall make an amendment to Explanation to Section 10 (26AAA) of I.T. Act, 1961, so as to suitably include a clause to extend the exemption from payment of income tax to all Indian citizens domiciled in Sikkim on or before 26th April, 1975. The reason for such a direction is to save the explanation from unconstitutionality and to ensure parity in the facts and circumstances of the case. iv) Till such amendment is made by the Parliament to the Explanation to Section 10 (26AAA) of I.T. Act, 1961, any individual whose name does not appear in the Register of Sikkim Subjects but it is established that such indiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act, even if his/her name does not appeal in the Register of Sikkim. 7. Respectfully following the same and examining the facts of the instant case, we notice that the assessee though is not a Sikkimese and is name is not appearing in the Register of Sikkim but as per the residential certificate issued by the District Collector, East District, Gangtok, he is found to be domiciled in the state of Sikkim on or before 26th April, 1975 and, therefore, assessee is well covered by the decision of the Hon ble Supreme Court and thus, is entitled to exemption u/s 10(26AAA) of the Act for the income earned from carrying out the activity in the State of Sikkim. 8. In the result, appeal of the assessee is allowed. Order pronounced in the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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