9911796707
TMI Blog2025 (2) TMI 580X X X X Extracts X X X X X X X X Extracts X X X X ..... eyond jurisdiction and invalid, rendering the impugned assessment order u/s. 147/144/144B dated 03.03.2023 wrong, erroneous, ab-initio void, unlawful and deserves to be set-aside/quashed. 2. For that in the facts and circumstances of the case and in law, the reason recorded in writing holding income escaped assessment and the sanction of appropriate authority were not made available to the assessee, rendering the process of assessment invalid, erroneous and untenable. 3. For that in the facts and circumstances of the case the lower authorities failed to appreciate that the income of the assessee is fully exempt u/s 10(26AAA) of the Income Tax Act, 1961, being resident of the state of Sikkim. 4. For that the adjudication of the Learned Commissioner of Income Tax (Appeals) in directing addition u/s 69 of the Income Tax Act, 1961 on estimate basis, to determine total income, is wrong, misconceived and should be deleted. 5. For that the assessee craves leave to alter, add, amend, moderate, substitute or delete any one or more of the ground or grounds of appeal at any time before or in course of hearing of the appeal." 2.1. The Revenue is in appeal before the Tribunal raising t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but had not filed the return of income. Accordingly, the case was reopened by issuing notice u/s 148 of the Act but no return of income was filed even in response to this notice. Several notices were issued subsequently and the assessee made the same submission as that made in in response to notice u/s 148A(b) of the Act. The assessee had stated in response to the aforesaid notice that she is a Sikkimese individual holding a certificate of Identification having volume number and serial number of the Government of Sikkim. She further stated that her source of income was from the contractor's business within the State of Sikkim and cash was withdrawn frequently as payment to labourers had to be made. Since the income was exempt u/s 10(26AAA) of the Act and as per section 2(7) of the Act she was not an assessee as an assessee means a person by whom any tax or any other sum of money is payable under the Act, consequently she did not come under the definition of assessee as she was exempt from paying tax. Being a Sikkimese individual and exempt from the provision of the Act as per section 10(26AAA) of the Act, she was not required to file the return. The assessee attached a certificate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c.147 to examine the source for cash withdrawals to the tune of Rs. 1.08,28,180, appellant submitted as below: The appellant is carrying the proprietorship business in the name and style of Nirmala Sharma having its registered office at Samsing Gelling Pipalay, Soreng West Sikkim. Mrs Nirmala Sharma is in the business of construction within the State of Sikkim. The enlistment Certificate as issued by the Government of Sikkim proving that she is a contractor is attached herewith. However, the appellant did not file a return of income under Sec.139(1) making a claim of exemption under Sec 10(26AAA). Appellant in the grounds of appeal and in her submission in the appeal was harping on the only issue that she was residing in Sikkim for a long period and also produced the certificate granted by the Sikkim Government and she also explained that she was working as contractor and the withdrawals in the bank account were payments made to labourers and it also consists of expenditure for building materials for executing the contract work. The appellant has submitted the break up for expenditure incurred every month and cash book and bank statement in support of its claim. However the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... withdrawal was towards execution of contract work. But the entire cash withdrawal was brought to tax as no details or evidences to prove that the appellant was engaged in contract work was submitted by the appellant. There is no doubt that the appellant has carried on the business. In these circumstances, to meet the ends of justice, the Assessing Officer is directed to estimate the total income at 8% on the total receipts in the bank account and determine the total income. Thus, the ground stands "Partly Allowed". In the result, the appeal is "Partly Allowed"." Aggrieved with the appellate order, both the assessee as well as the Revenue have filed the appeals. 5. Rival contentions were heard and the record and the submissions made have been examined. Before us, the Ld. AR filed a copy of the works contract agreement made on the fourth day of February, 2017 between M/s. Nirmala Sharma and M/s. Skipping Stones (P) Ltd. and also Form for Identity of Contractor under Sikkim Public Works Department bearing Registration No. 4597/PWD/2017 dated 04.02.2017 and Certificate of Identification bearing Sl. No. 7923 DC (W) dated 16.11.2010 issued by Office of the District Collector, Governm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idence in violation of Rule 46A of the Income Tax Rules, 1962. Since some of the documents filed before us were not filed before the Ld. AO and additional evidence has been admitted by the Ld. CIT(A), after examining the facts of the case, we deem it appropriate to set aside the orders of the Ld. CIT(A) as well as of the Ld. AO and remit the matter back to the file of the 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). The 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 and shall be given a reasonable opportunity of being heard to make any further submission it wants to make in support of the relief claimed. The assessee shall not seek unnecessary adjournment. Accordingly, the grounds taken by the assessee in this appeal as well as the grounds taken by the Revenue are allowed for statistical purposes. 7. In the result, both the appeals filed by the assessee as well as t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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