Case Law Details
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.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
The present appeal is filed by the assessee against the order dated 16.10.2023 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’).
2. At the outset, the ld. AR stated at the Bench that there is a delay of 279 days in filing the present appeal due to personal circumstances of the assessee as the assessee was pregnant in the month of August 2021 and was advised complete bed rest by her consulting doctor. Consequently, the assessee was unable to follow up the emails and messages from the Income Tax department. Following the birth of her child, she was fully occupied with childcare and her own postpartum recovery. Due to this medical and personal circumstances, she was unable to file the appeal on time. An application explaining the aforesaid reasons was submitted by the ld. AR before the Bench.
3. We, after considering the submissions and reasons mentioned in the application filed by the assessee, we condone the delay of 279 days in filing the appeal and proceed to adjudicate the present appeal on merits.
4. The brief facts of the case are that the assessee is an individual and filed her return on 26.03.2018 declaring returned incomed as Nil. The case of the assessee was subsequently selected for scrutiny under CASS leading to issuance of statutory notices u/s 143(2) and 142(1) of the Act. After examining the case of the assessee, the Assessing Officer found during the assessment proceedings that the assessee had not complied with the various letters and notices issued. Consequently, an addition was made by the Assessing Officer to her income u/s 69A of the Act amounting to Rs.19,02,36,848/- based on her non-compliance.
5. Dissatisfied with the assessment order, the assessee preferred appeal before the ld. CIT(A), where, the ld. CIT(A) upheld the order of the Assessing Officer.
6. In appeal before us, the ld. AR contended that the assessee, being a Sikkimese individual, is exempted on her income u/s 10(26AAA) of the Act and necessary certificate was duly provided to the lower authorities. However, this claim was not considered by the Assessing Officer while framing the assessment order. The ld. AR requested that the matter may be remanded to the file of the Assessing Officer for reconsideration of the assessee’s claim for exemption u/s 10(26AAA) of the Act which provides tax exemptions for Sikkimese individuals.
7. On the other hand, the ld. DR did not object to the above prayer made by the ld. AR.
8. We, after hearing both the parties and examining the records available, find merit in the contention of the ld. AR and deem it appropriate to remand the matter to the file of Assessing Officer for fresh examination with a direction to reconsider the assessee’s claim for exemption u/s 10(26AAA) of the Act by providing her a reasonable opportunity to furnish evidences in support of her claim. The assessee is also directed to appear before the Assessing Officer and provide all supporting documents to substantiate her claim without delay.
9. In the result, the appeal of the assessee is allowed for statistical purposes.
Kolkata, the 5th November, 2024.
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