Usha Dhamala Vs ITO (ITAT Kolkata)
The ITAT Kolkata has recently remanded the case of Usha Dhamala to the Assessing Officer (AO) for reconsideration of her claim for tax exemption under Section 10(26AAA) of the Income Tax Act, 1961. The appeal was filed against the order passed by the National Faceless Appeal Centre (CIT(A)) on 16th October 2023. The assessee, a Sikkimese individual, had filed her income tax return in 2018, declaring no income. However, during the scrutiny proceedings, the AO made an addition of over Rs. 19 crore to her income, citing non-compliance with several notices. This led to the rejection of her claim for exemption under Section 10(26AAA), which grants tax benefits to Sikkimese individuals. The CIT(A) upheld the AO’s decision, prompting the appeal to ITAT.
In the appeal, Usha Dhamala’s representative argued that the AO had failed to consider her exemption claim despite providing the necessary certificate. The ITAT found merit in the appeal, agreeing that the exemption under Section 10(26AAA) was not appropriately evaluated by the AO. As a result, the case was remanded to the AO for a fresh examination, instructing the officer to reconsider the claim and provide the appellant with a fair opportunity to submit supporting evidence. The decision also acknowledged the personal circumstances surrounding the delay in filing the appeal, which had been caused by health issues related to pregnancy and childcare. The ITAT allowed the appeal for statistical purposes, directing a more thorough review of the case.
