INCOME TAX OFFICER, GANGTOK vs. BHUMIKA RAI , NAMCHI, SIKKIM

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ITA 1581/KOL/2024Status: DisposedITAT Kolkata23 January 2025AY 2017-18Bench: SRI SANJAY GARG, JUDICIAL MEMBER & SRI RAKESH MISHRA (Accountant Member)7 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) erred by admitting fresh evidence without obtaining a remand report from the AO, thereby contravening Rule 46A(3) of the Income Tax Rules, 1962. Consequently, both the AO's and CIT(A)'s orders were set aside, and the assessment proceedings were remanded back to the AO for a fresh assessment, with directions to provide the assessee an opportunity to furnish all necessary evidence.

What were the facts?

The assessee, engaged in LPG and DTH services in Sikkim, claimed income tax exemption under Section 10(26AAA). Her assessment was re-opened, and the Assessing Officer made significant additions for unexplained money and deposits, denying the exemption, leading to a total income of Rs. 9,19,53,065/-. The CIT(A) allowed the assessee's appeal, accepting additional evidence (certificate of identification) and deleting the additions, which the Revenue contested.

What were the issues?

1. Whether the CIT(A) was justified in allowing exemption under Section 10(26AAA) for unexplained income/investments. 2. Whether the CIT(A) erred by admitting fresh evidence without a remand report from the AO, contravening Rule 46A(3) of the Income Tax Rules, 1962.

Which sections of the Income-tax Act were involved?

Section 10,Section 10(26AAA),Section 69,Section 69A,Section 144,Section 144B,Section 147,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘C’ BENCH, KOLKATA

Before: SRI SANJAY GARG & SRI RAKESH MISHRA

For Respondent: DR. Assessee represented by : Siddharth Agarwal, AR

order

: January 23rd, 2025 ORDER

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

1.

The present appeal filed by the Revenue pertaining to the AY 2017- 18 is against the order of the Commissioner of Income Tax (Appeals)- NFAC, Delhi [hereinafter referred to as ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (in short, the 'Act') dated 14.06.2024 arising out of the assessment order framed u/s 147/144/144B of the Act dated 24.03.2022.

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