Mere Work from Home in Meghalaya Does Not Exempt Salary: ITAT Guwahati

Aphidalin Syiemlieh Vs ITO (ITAT Guwahati)

Mere Work from Home in Meghalaya Does Not Make Salary Exempt under Section 10(26): Guwahati ITAT

The Guwahati Bench of the Income Tax Appellate Tribunal has held that merely working from home from a notified tribal area is not sufficient to claim exemption under Section 10(26). The assessee must establish through cogent evidence that the salary income actually accrued or arose from a source situated within the specified area.

The ruling was rendered in the case of Aphidalin Syiemlieh v. ITO, Ward-1, Shillong, ITA No. 359/GTY/2026, relating to Assessment Year 2024-25, order dated 11 September 2026.

Facts of the case

The assessee was an individual employed with Dell Technologies. She filed her return of income declaring a total income of merely ₹11,450 under the head “Income from Other Sources”, after claiming exemption of salary income under Section 10(26).

The case was selected for scrutiny under CASS on the ground of “large exemption claimed from Schedule Salary in the new tax regime.”

During the assessment proceedings, the Assessing Officer examined whether the assessee satisfied all the conditions prescribed under Section 10(26). The Assessing Officer ultimately rejected the exemption and made an addition of ₹15,41,264, representing the salary income claimed as exempt.