MONALIZA NONGRUM,SHILLONG vs. ASSESSING OFFICER, SHILLONG

The issue raised by the assessee is against the confirmation of addition of ₹76,73,350/- u/s 69A of the Income-tax Act, 1961 (the Act) towards, money deposited in the bank account and ₹10 lacs u/s 69A of the Act as unexplained investment. At the outset, the ld. Counsel for the assessee submitted that the assessee is a bona fide resident of Meghalaya and has been engaged in the business of trading in agricultural products. The ld. Counsel for the assessee submitted that the income of the assessee is exempt u/s 10(26AAA)

The ld. DR on the other hand strongly opposed the arguments of the ld. AR by submitting that if the exemption is available u/s 10(26AAA) of the Act even then the assessee has to explain the manner and the source of income derived during the year.

After hearing the rival contentions and perusing the materials available on record, we find that the assessee has not furnished before the ld. AO the certificate relating to domicile and certificate issued by the local authority certifying the fact that the assessee is engaged in the business of trading in agricultural products. Therefore, in the interest of justice and fairplay, we are of the view that the ends of justice would be well served if the issue is restored to the file of the ld. AO with a direction to decide the same after affording reasonable opportunity of hearing to the assessee. Accordingly we restore the appeal to the file of the AO with a direction to decide the same afresh after taking into account the evidences which the assessee may file in defense.