https://www.taxtmi.com/caselaws?id=774983 The ITAT Kolkata allowed the assessee's appeal for exemption under section 10(26AAA). The AO had rejected the claim and assessed income at 8% of turnover, denying exemption on grounds that the assessee was a proprietary concern using a firm's PAN. The CIT(A) upheld this denial. However, ITAT found the assessee was a sole proprietor who was a bona fide Sikkim resident, having settled there before April 1, 1975. The CIT(A) failed to consider the SC decision in Association of Old Settlers of Sikkim, which held that Indian citizens domiciled in Sikkim on the merger date (April 26, 1975) are covered under the exemption provision. The tribunal ruled that despite the incorrect PAN status, the assessee was entitled to section 10(26AAA) exemption for the petrol pump business. en-us Tue, 15 Jul 2025 00:00:00 +0530 Thu, 17 Jul 2025 08:19:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774983 The ITAT Kolkata allowed the assessee's appeal for exemption under section 10(26AAA). The AO had rejected the claim and assessed income at 8% of turnover, denying exemption on grounds that the assessee was a proprietary concern using a firm's PAN. The CIT(A) upheld this denial. However, ITAT found the assessee was a sole proprietor who was a bona fide Sikkim resident, having settled there before April 1, 1975. The CIT(A) failed to consider the SC decision in Association of Old Settlers of Sikkim, which held that Indian citizens domiciled in Sikkim on the merger date (April 26, 1975) are covered under the exemption provision. The tribunal ruled that despite the incorrect PAN status, the assessee was entitled to section 10(26AAA) exemption for the petrol pump business. Case-Laws Income Tax Tue, 15 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774983