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TMI Blog2025 (2) TMI 580X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. AO for passing the assessment order de novo as the evidence filed before us along with the grounds of appeal for claiming exemption under section 10(26AAA) of the Act were not filed before the Ld. AO and some of them were admitted by the Ld. CIT(A). Assessee shall be at liberty to make all submissions in support of the claim that the income was exempt u/s 10(26AAA) of the Act as per the provisions thereof.
Appeals filed by the assessee as well as the Revenue are allowed for statistical purposes. X X X X Extracts X X X X X X X X Extracts X X X X ..... f assessment proceedings. Further it is evident that the CIT(A) has relied on fresh evidences without calling remand report from the AO which contravenes Rule 46A(3) of the Income Tax Rules, 1962. 4. That the Ld CIT(A), NFAC, Delhi has not discussed in his appellate order the reasons of accepting additional evidences and the situation which prevented the assessee from producing such evidence before the AO during the course of assessment proceedings. Therefore, the appellate authority has erred in accepting additional evidences without discussing the circumstances that prevented the assessee from producing the same before the AO during the course of assessment proceedings. 5. That, the Ld CIT(A), NFAC, Delhi is not justified in law and in fact in striking down the addition made by the assessing officer treating the assessee eligible for addition at 8% of his/her business turnover without calling for confirmation of account. There is no evidence with audited books of accounts etc. maintained and submitted by the assessee. 6. That, the department craves the right to add, modify, delete or alter any grounds further during the course of present appeal." 3. Brief facts of the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o substantiate her eligibility of her being a Sikkimese. However, the main issue in the case of the assessee is whether the financial transactions in her bank accounts are genuine transactions for business activities in the state of Sikkim. Mere submission of enlistment certificate does not prove that she was engaged in the business activities in the state of Sikkim. Therefore, in the absence of documentary evidence i.e. work order for labour contract, GST/VAT Returns and TDS certificates, financial transactions remains unexplained." 4. The Ld. AO accordingly added the amount of Rs. 1,08,28,180/- deposited and later withdrawn treating it as unexplained investment u/s 69 of the Act as the required reconciliation was not done by the assessee. Aggrieved with the assessment order, the assessee filed appeal before the Ld. CIT(A) who vide the impugned order allowed partial relief to the assessee. The relevant extract from the order of the Ld. CIT(A) is as under: "8. Adjudication: The averments of the Assessing Officer and the submission of the appellant have been considered by me carefully. The only issue raised in this appeal relates to addition made under sec.69 towards cash withd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... did not file a return of income making the claim of exemption it was held that the appellant is not eligible for claim of exemption under Sec. 10. Assessing Officer pointed out that the appellant also did not produce the details of contract work undertaken by the appellant during the year. In this regard, appellant had submitted the details of payment made to the labourers and other agencies and the enlistment certificate. It is mandatory on the part of the appellant to file a return of income reflecting the details of income and expenditure and without ascertaining the income as per the computation sheet, the correctness of the claim of benefit of exemption cannot be determined, There is no dispute that the income earned in Sikkim is exempt under the provisions of Income tax Act. Since the appellant failed to furnish a return of income either under Sec. 139(1) or under Sec. 148 and also the computation of total income and mentioning the details of exemption in the column provided in the return, I am constrained to uphold the action of the Assessing Officer in denying claim of benefit of exemption under Sec. 10(26AAA) of the Act. Now, coming to the addition made under the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se name is included in the Register of Sikkim Subjects by virtue of the Government of India Order No. 26030/36/90-I.C.I., dated the 7th August, 1990 and Order of even number dated the 8th April, 1991; or (iii) any other individual, whose name does not appear in the Register of Sikkim Subjects, but it is established beyond doubt that the name of such individual's father or husband or paternal grand-father or brother from the same father has been recorded in that register; or (iv) any other individual, whose name does not appear in the Register of Sikkim Subjects but it is established that such individual was domiciled in Sikkim on or before the 26th day of April, 1975; or (v) any other individual, who was not domiciled in Sikkim on or before the 26th day of April, 1975, but it is established beyond doubt that such individual's father or husband or paternal grand-father or brother from the same father was domiciled in Sikkim on or before the 26th day of April, 1975; 6. Thus, for claiming exemption u/s 10(26AAA) of the Act, not only the assessee should be a Sikkimese as per the provision specified but the source of income should also be from within the State of Sikkim. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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