TaxTMI 
TaxTMI 
2022 (11) TMI 987
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....f the notice in the Revenue's appeal, the assessee has filed Cross Objection bearing No. 01/GAU/2011. 2. Alongwith Form No. 36, Revenue has filed statement of facts and thereafter raised only one ground of appeal, which reads as under:- "The CIT(A) has erred in holding that the capital carried forward and the introduction of capital as income exempt u/s. 10(26) of the Income Tax Act, 1961, while holding that due opportunity was provided to the assessee by the AO before passing the order u/s. 144 of the Income Tax Act, 1961. The CIT(A) failed to appreciate the fact that the onus to prove otherwise by the AO does not hold good in the instant case since the assessee had failed to discharge his onus properly". 3. This appeal ....
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....claimed it exempt under section 10(26) of the Income Tax Act. An assessment order was passed under section 143(3) on 31.03.2006 rejecting the claim of exemption in respect of income arose to the assessee from execution of contract works at Tripura. This order was set aside by the ld. Commissioner by exercising powers under section 263 vide his order dated 31.03.2009. In pursuance of this 263 order, fresh assessment order has been passed on 31.12.2009 under section 143(3) read with section 263. The computation of income in this assessment order reads as under:- "Therefore, based on the above discussions the income is computed as under:- Contract income from Arunachal Pradesh : NIL Income from Tripura : Rs. 48,62,25....
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....ctional order of Addl. CIT, Range-Tezpur, regular jurisdiction over the appellant lies under ACIT Circle-Tezpur as per section 120 of the J.T. Act. Moreover, the appellant had not questioned the jurisdiction of the AO during the course of assessment proceedings initiated following the order u/s. 263. In view of the above, the contention of the appellant is found to be without any' merit. Appeal fails on this ground. 6. With regard to the third ground of appeal, hearings were fixed by the AO on 30.07.2009 and 25-08-2009. The appellant requested for keeping assessment proceedings in abeyance till disposal of appeal filed before the ITAT against the order passed u/s. 263. As matter was time barring, therefore, the assessment was c....
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.... one of the areas specified in the said Sub-section, to another area although once again failing within the areas specified in the Sub-section, would not get the benefit of the exemption under Section 10(26). If a literal meaning is to be given to the expression "residing in any area specified", in our view, Section 10(26) is capable of producing a result that any member of a Scheduled Tribe irrespective of the fact whether such a Scheduled Tribe is a Scheduled Tribe, in relation to those territories specified in the said Subsection or not, is entitled to the benefit of the said Sub-section. It is not the case of either the petitioners or the revenue that the Parliament, while enacting Section 10(26) intended such result. Therefore, the exp....
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....he state of Arunachal Pradesh. Therefore, following the decision of Hon'ble Gauhati High Court cited above, the income of the appellant accruing or arising from the state of Tripura, a specified area under Section 10 (26), would be exempt under the said section. No material is brought on record by the AO on the capital brought forward and introduction of fresh capital Rs. 1,81,07,565/- that the same has accrued from areas other than the states of Arunachal Pradesh and Tripura. The AO has not found the above capital to have accrued from areas other than the states of Arunachal Pradesh and Tripura. The above income of the appellant is, therefore, exempt u/s. 10(26) of the IT Act. The appeal is allowed on these grounds. 8. In the ....
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....any merit in the appeal of the Revenue. 8. Now we take the Cross Objection taken by the assessee. In the first ground of Cross Objection, the assessee has pleaded that ld. CIT(Appeals) is wrong in observing that jurisdiction of the case was with the ACIT, Circle-Tezpur. In the statement of fact appended with the C.O., the assessee has pleaded that originally the assessee has filed his return of income with Ward North Lakhimpur. His assessment was also passed by ITO, Ward-North Lakhimpur only. The case was subsequently transferred to ACIT, Circle Tezpur and the reason for such transfer was that income of the assessee exceeded Rs. 500,000/-. He submitted that the last return filed by the assessee before passing of the order by ld. ACIT is ....