KIMIYETO SEMA,DIMAPUR vs. CENTRAL CIRCLE-2 GUWAHATI , GUWAHATI

IN THE INCOME TAX APPELLATE TRIBUNAL – GUWAHATI BENCH VIRTUAL BENCH AT KOLKATA

Before Shri Sonjoy Sarma, Judicial Member and Shri Rakesh Mishra, Accountant Member ITA Nos. 353, 354, 355 & 356/GTY/2025 Assessment Years: 2020-21, 2021-22, 2022-23 & 2023-24 Kimiyeto Sema……………………………..……….….………...Appellant Vill Nteiuland, Po-Niuland Teh Dimapur, Nagaland-797112 [PAN: DIHPS9760K] vs. DCIT, Central Circle-2, Guwahati…..…..……..……...…..…..Respondent Assam-781005 Appearances by: Shri Kishor Jain, FCA, appeared on behalf of the Appellant. Shri Santosh Kumar Karnani, Addl. CIT, appeared on behalf of the Respondent. Date of concluding the hearing : May 13, 2026 Date of pronouncing the order : May 18, 2026 ORDER Per Sonjoy Sarma, Judicial Member: These above-captioned appeals have been filed by the same assessee against the separate orders of Commissioner of Income Tax (Appeal) [hereinafter referred to as “the Ld. CIT(A)”)] all dated 07.10.2025, pertaining to the assessment years 2020-21, 2021-22, 2022-23 & 2023-24 respectively, passed u/s 250 of the Income Tax Act, 1961 [hereinafter referred to as “the Act”]. The details of the appeals are as under: - ITA No.353/GTY/2025 for the assessment year 2020-21, arising from the assessment order dated 18.01.2025 passed u/s 147 r.w.s 143(3) of the Act; ITA No.354/GTY/2025 for the assessment year 2021- 22, arising from the assessment order dated 03.01.2025 passed u/s 147 of the Act; ITA No.355/GTY/2025 for the assessment year 2022-23, arising from the assessment order dated 31.12.2024 passed u/s 147 r.w.s 143(3) of the Act and ITA No.356/GTY/2025 for the assessment

ITA Nos. 353, 354, 355 & 356/GTY/2025 Kimiyeto Sema, Dimapur; A.Ys: 2020-21, 2021-22, 2022-23 & 2023-24 year 2023-24, arising from the assessment order dated 31.12.2024 passed u/s 143(3) of the Act. Since issues involve in these appeals are common and pertain to the same assessee, except variation in assessment orders, therefore, all appeals were heard together and are being disposed of by this consolidated order. First, we take up ITA No.353/GTY/2025 for the assessment year 2020-21 as a lead case and our findings therein shall apply mutatis mutandis to the remaining appeals. 2. Brief facts of the case are that information was received by the Deputy Director of Income Tax (Investigation), Guwahati on 16.02.2023 from the Magistrate (SST), Westyard Junction, Dimapur regarding seizure of cash amounting to Rs.20,00,000/- in demonetised 500 notes consisting of 4000 pieces from the assessee. Thereafter, summons u/s 131(1A) of the Act were issued by the Investigation Wing, asking the assessee to explain the source of cash. However, neither any satisfactory explanation nor supporting documents regarding the source of the cash were furnished by the assessee. In view of the failure of the assessee to explain the source of the cash found and seized by the SST Team, a Warrant of Authorisation u/s 132A of the Act was issued by the Principal Director of Income Tax (Investigation), NER, Guwahati, and the same was executed in the case of the assessee. Consequently, cash amounting to Rs.20,00,000/- was requisitioned from the Officer-in- Charge of Sub-Urban Police Station, Dimapur, Nagaland. During the course of investigation proceedings u/s 131(1A) of the Act, the assessee was asked to explain the source of cash amounting to Rs.20,00,000/- and to furnish documentary evidence in support thereof, including details of bank accounts, nature of business, source of income, and books of accounts.

ITA Nos. 353, 354, 355 & 356/GTY/2025 Kimiyeto Sema, Dimapur; A.Ys: 2020-21, 2021-22, 2022-23 & 2023-24 In response, the assessee submitted that he was engaged in agricultural activities and animal husbandry and that the income derived from such activities amounted to approximately Rs.48,50,000/-. It was also submitted that the assessee belongs to the Scheduled Tribe community residing in a specified area, and out of the cash amounting to Rs.20,00,000/-, a sum of Rs.10,13,000/- represented sale proceeds of pigs and piglets, Rs.7,10,000/- represented past savings, and Rs.2,60,000/- represented profit earned from various sale proceeds of fish from his fisheries. The assessee filed a return of income u/s 139A of the Act for the assessment year 2020-21 on 10.10.2022 declaring total income of Rs.2,51,560/-. Subsequent to the requisition proceedings u/s 132A of the Act conducted in the case of the assessee during the year 2023, proceedings u/s 147 of the Act were initiated with prior approval of the PCIT, Central, Guwahati. Accordingly, notice u/s 148 of the Act was issued to the assessee. In response thereto, the assessee filed a return of income declaring income of Rs.2,51,560/-. Thereafter, notices u/s 143(2), 142(1), and 144 of the Act were issued to the assessee. The Assessing Officer, however, was not satisfied with the explanation furnished by the assessee and completed the assessment by determining the total income of the assessee at Rs.33,41,560/- after making an addition of Rs.30,90,000/-. 3. Aggrieved by the above order, the assessee went in appeal before the Ld. CIT(A), who sustained the addition made by the Assessing Officer. 4. Still aggrieved by the above order, the assessee is in appeal before this Tribunal. At the time of hearing, the Ld. AR submitted that the assessee belongs to the Scheduled Tribe community residing in a specified area and, therefore, income earned from the specified area is exempt u/s 10(26) of the Act. It was further submitted that the cash in question represented agricultural income, income from contractual business, and sale proceeds arising from animal husbandry activities, 3

ITA Nos. 353, 354, 355 & 356/GTY/2025 Kimiyeto Sema, Dimapur; A.Ys: 2020-21, 2021-22, 2022-23 & 2023-24 including sale of pigs and piglets. Therefore, according to the Ld. AR, the amount could not have been treated as unexplained in the hands of the assessee. Accordingly, it was prayed that the matter requires fresh examination at the level of the Assessing Officer after proper verification of books and supporting evidence. 5. On the other hand, the Ld. DR supported the orders of the authorities below and submitted that despite opportunities granted, the assessee failed to furnish sufficient supporting documents before the authorities below. 6. We, after hearing the rival submissions and perusing the material available on record. We find that a substantial addition of Rs.30,90,000/- has been made during the course of assessment proceedings. It is further noticed that the assessee claims to be a member of the Scheduled Tribe residing in a specified area and has also claimed exemption u/s 10(26) of the Act, which aspect requires proper verification in accordance with law. It is also noticed that the assessee failed to furnish adequate supporting evidence before the authorities below in support of the explanation regarding the source of cash. Therefore, in the interest of justice and fair play, we restore the matter to the file of the Assessing Officer with a direction to examine the issue afresh in accordance with the provisions of section 10(26) of the Act and after proper verification of the records and supporting documents to be furnished by the assessee. The assessee is also directed to comply with the notices issued by the Assessing Officer and furnish all supporting documents without fail. In terms of the above, appeal of the assessee in ITA No.353/GTY/2025 is allowed for statistical purposes. Since issues involve in ITA Nos.354/GTY/2025, 355/GTY/2025 & 356/GTY/2025 are identical to the issue decided by us in ITA

ITA Nos. 353, 354, 355 & 356/GTY/2025 Kimiyeto Sema, Dimapur; A.Ys: 2020-21, 2021-22, 2022-23 & 2023-24 No.353/GTY/2025, our findings and observations recorded therein shall apply mutatis mutandis to these appeals also. 7. Accordingly, all the appeals of the assessee are allowed for statistical purposes.

Kolkata, the 18th May, 2026.

Sd/- Sd/- [Rakesh Mishra] [Sonjoy Sarma] Accountant Member Judicial Member Dated: 18.05.2026. DP, PS Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3. CIT(A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Bench