MIKOLAS LYNGDOH,EAST JAINTIA HILLS DISTRICT vs. INCOME TAX OFFICER, DELHI

Facts

The assessee, Mikolas Lyngdoh, appealed against a reassessment order for AY 2017-18, claiming exemption under Section 10(26) as a Scheduled Tribe residing in Meghalaya's Sixth Schedule area, with income derived from coal, broomsticks, and agricultural produce within the same region. A significant cash deposit was treated as unexplained money under Section 69A by the authorities. The assessee did not appear before the lower authorities, leading to ex-parte orders.

Held

The Tribunal, with no objection from the Departmental Representative, set aside the orders of both the CIT(A) and the Assessing Officer. The matter was remitted back to the AO for a fresh assessment (de novo) to provide the assessee a proper opportunity to present evidence regarding the Section 10(26) exemption claim, which had not been submitted to the lower authorities.

Key Issues

Whether the ex-parte reassessment proceedings were valid; whether the assessee's income from tribal areas is exempt under Section 10(26); and whether the cash deposit constitutes unexplained money under Section 69A.