PRIMULA BHANDARI,GANGTOK vs. DCIT, CIRCLE 3(2),, GANGTOK

आयकर अपीलीय अधिकरण, कोलकाता पीठ, कोलकाता
IN THE INCOME TAX APPELLATE TRIBUNAL
“SMC” BENCH KOLKATA

BEFORE SHRI SONJOY SARMA, JUDICIAL MEMBER
AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER

आयकर अपील सं/ITA No.1394/KOL/2025
(नििाारण वर्ा / Assessment Year : 2018-2019)
Primula Bhandari

C/o Subash Agarwal & Associates,
1, Gibson Lane, Suite 213, Kol-69. Vs
DCIT, Circle-3(2), Kolkata
PAN No. :AJVPB2150Q
(अपीलार्थी /Appellant)
..
(प्रत्यर्थी / Respondent)

नििााररती की ओर से /Assessee by : Smt. Parna Datta, Advocate
राजस्व की ओर से /Revenue by : Shri Sanjib Kumar Paul, Sr. DR
सुिवाई की तारीख / Date of Hearing
: 22/10/2025
घोर्णा की तारीख/Date of Pronouncement
: 23/10/2025
आदेश / O R D E R
PER SONJOY SARMA, JM :

This is an appeal filed by the assessee against the order of the NFAC dated 06.05.2025 passed u/s 250 of the Income Tax Act,
1961 (‘Act’).
2. The brief facts of the case are that the assessee did not file the return of income for the relevant assessment year. The Assessing Officer noticed cash deposits in the bank account of the assessee and accordingly reopened the assessment under section 147 of the Income-tax Act, 1961.The assessment was completed under sections 144/147, determining the total income at ₹25,85,346/-, after making an addition of ₹25,85,346/- under section 69A of the Act on account of unexplained money.
Primula Bhandari

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3. Aggrieved by the said assessment, the assessee preferred an appeal before the CIT(A), who confirmed the addition. Hence, the assessee is in further appeal before this Tribunal.
4. At the time of hearing, the learned Authorized Representative submitted that the assessee is a Sikkimese individual and is, therefore, entitled to the benefit under section 10(26AAA) of the Income-tax Act, 1961.It was contended that the amount of ₹25,85,346/- represented voluntary gifts received from various persons during the funeral of the assessee’s late father, Late Nar
Bahadur Bhandari, the former Chief Minister of the State of Sikkim. The receipt of such amounts, it was argued, is a long- standing customary and traditional practice prevalent in the State and, therefore, cannot be regarded as taxable income. The learned
AR further submitted that the Assessing Officer failed to appreciate these facts and made the addition without proper enquiry. It was prayed that the matter be remanded back to the Assessing Officer for a fresh examination of the claim under section 10(26AAA) of the Act, taking into account the local customary practices.
5. The learned Departmental Representative relied on the orders of the lower authorities and submitted that the assessee had not produced any documentary evidence either before the Assessing
Officer or the CIT(A) to substantiate the claim. However, the DR did not strongly object if the issue was remanded back for re- examination.
6. We have heard the rival submissions and perused the material available on record. The assessee has stated that the cash amount in question was received as voluntary gifts from various persons during the funeral of his father, Late Nar Bahadur
Bhandari and that the same is rooted in the traditional customs of Primula Bhandari

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the State of Sikkim. The assessee has also claimed exemption under section 10(26AAA) of the Income-tax Act, 1961. However, this aspect has not been properly examined by the lower authorities. In view of the above facts and circumstances and in the interest of justice and fair play, we consider it appropriate to restore the issue to the file of the Assessing Officer with a direction to Examine afresh the claim of the assessee under section 10(26AAA) of the Act and verify the nature of the receipts claimed to have been received as per customary practices prevailing in the State of Sikkim during the funeral of his father. The Assessing
Officer shall afford adequate opportunity of being heard to the assessee and thereafter pass a reasoned order in accordance with law.

Order pronounced in the open court on 23/10/2025. (RAKESH MISHRA) (SONJOY SARMA)
ACCOUNTANT MEMBER
JUDICIAL MEMBER

ददिांक Dated: 23/10/2025
RS

आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to :

आदेशािुसार/ BY ORDER,

(