Loading judgment…
Facts
The assessee did not file an Income Tax Return for the assessment years 2013-14 to 2015-16, leading to assessment orders under Section 144 r.w.s. 147 of the Income-tax Act. The assessee, a member of the Association of Old Settlers of Sikkim, believed their income was exempt under Section 10(26AAA) and argued that they were not given adequate opportunity to be heard.
Held
The Tribunal noted that the Supreme Court had decided the issue regarding exemption for members of the Association of Old Settlers of Sikkim in 2013. It also found that the Assessing Officer had granted only two days to respond to the show cause notice, which is insufficient. Therefore, to ensure natural justice, the matter was remanded.
Key Issues
Whether the assessee was denied adequate opportunity of hearing by the Assessing Officer and whether their income is exempt under Section 10(26AAA) of the Income-tax Act.
Sections Cited
250, 144, 147, 10(26AAA)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “D” BENCH KOLKATA
Before: Shri Rajesh Kumar & Shri Pradip Kumar Choubey
order : January 28, 2026 ORDER Per Pradip Kumar Choubey, Judicial Member: All the captioned appeals have been preferred by the assessee against the separate orders all dated 15.09.2025 of the National Faceless Appeal Centre [‘CIT(A)’] passed under Section 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) respectively. Since, the issues involved in all the appeals are common and relate to the same assessee, therefore, these appeals have been heard together and are being disposed of by this consolidated order.
is taken as lead case for narration of facts. facts of the case are that the assessee had not filed Income Tax Return for the year under consideration. In this case, assessment order u/s 144 has been passed assessing total income of Rs.27,69,030/-. Thereafter, notice u/s 148 was to 2557/Kol/2025 issued. The assessment was completed u/s 144 r.w.s. 147 of the Act by assessing total income of Rs.28,25,345/-.
Aggrieved by the said order, the assessee filed an appeal before the CIT(A) wherein the ld. CIT(A) dismissed the appeal of the assessee.
Aggrieved and dissatisfied, the assessee is in appeal before us. At the time of hearing, the Ld. AR submits that the assessee as a Member of the Association of Old Settlers of Sikkim in Writ Petition No.59 of 2013 before the Hon’ble Supreme Court, the Hon’ble Supreme Court has given directions in its order dated 11.02.2013 and the assessee’s total income is exempt from income tax as per provisions of section 10(26AAA) of the Act. The ld. AR further submits that the Assessing Officer had granted only two days to respond to the show cause notice and passed the assessment order without affording adequate opportunity of hearing. The Ld. AR prayed for one more opportunity to substantiate the case before the authorities below.
The Ld. DR did not make any objection to the above proposal of the ld. AR.
We have considered the submissions of the counsels of the respective parties and perused the material available on record. We find that the assessee is a member of Association of Old Settlers of Sikkim and the Hon’ble Supreme Court has decided the issue in 11.02.2013. We further find that as per provisions of section 10(26AAA) of the Act, the assessee was under bona fide belief that the entire income is exempt under the provisions of the Act, so the assessee could not file return of income. We also find that the assessment order was passed u/s 144 of the Act and the Assessing Officer granted just two days to respond to the show cause notice and the Assessing Officer passed the assessment order without affording adequate opportunity of hearing. Under the circumstances, in the interest of natural justice, we deem it fit to remand to 2557/Kol/2025 this matter back to the file of Assessing Officer with the direction to adjudicate the matter afresh after affording opportunity to the assessee of being heard. The assessee is directed to fully cooperate in the remand proceedings by producing supporting documents to substantiate the case. the facts and issues involved in all the appeals are identical, therefore, our findings/directions given above in will mutatis mutandis apply to also. Hence, are also allowed for statistical purposes.
In the result, all the captioned appeals filed by the assessee are allowed for statistical purposes.
Kolkata, the 28th January, 2026.