2024 (9) TMI 1810

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....ner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 19th April, 2024 and 23rd April, 2024 passed for Assessment Years 2014-15 and 2015-16 respectively. 2. ITA Nos. 1346 & 1349/KOL/2024 emanate from the penalty imposed by the ld. Assessing Officer u/s 271(1)(c) vide his order dated 13th September, 2022 passed in both these assessment years. These orders have been upheld by the ld. CIT(Appeals) vide his orders dated 23.04.2024 and 24.04.2024 passed in A.Ys. 2014-15 and 2015-16 respectively. 3. We take quantum appeals first. The grounds of appeal taken by the assessee in both the years are verbatim same. He has taken four grounds of appeal, but his grievances revolve around a single issue, namely "whethe....

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....he State of Sikkim at Melli, South Sikkim under his proprietorship concern in the name and style of M/s. Shangrila Oil Depot. The trade license was duly renewed upto 31st March, 2023. In order to buttress his contention, he relied upon the Certificate of Identification and a Notification of the Government of Sikkim. He further contended that being a Sikkimese, his income is exempt under section 10(26)(AAA). The ld. CIT(Appeals) has rejected this contention of the assessee on the ground that the assessee did not file return and he did not claim this benefit by way of return filed under section 139(1) of the Income Tax Act. The ld. CIT(Appeals) thereafter made reference to the judgment of the Hon'ble Supreme Court in the case of Goetze (India....

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....have been carrying on a petrol pump business under my proprietorship control under the name and style of Sangrila Oil Depot at Meili, South Sikkim. 6. That I did not earn any other income in any part of India, except from my business Sangrila Petrol Pump situated at Melli, South Sikkim as above. 7. That I am an individual and being a Sikkim Subject, my income earned in the state of Sikkim from my business as above is totally exempted u/s 10(26AAA) of the Income Tax Act, 1961. That the statements made above are true to my knowledge and belief and I sign this affidavit on this 4th day of September, 2024 at Siliguri Court. DEPONENT 7. On the other hand, ld. D.R. relied upon the orders of the ld. CIT(Appeals). ....

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.... without deciding that issue, the taxability cannot be determined. It is an incorrect interpretation of the ld. CIT(Appeals). In other words, whether an assessee has filed the return or not filed, the moment some taxable income is being determined, then, it has to be examined whether within the meaning of section 10(26)(AAA), such taxes could be levied from the assessee being a Sikkimese or not. Therefore, we set aside these observations of the ld. CIT(Appeals) and remit the issue to the file of ld. Assessing Officer with the following directions:- (a) The ld. Assessing Officer shall first determine whether assessee is a Sikkimese and he has earned the income from any source within the State of Sikkim or not. If answer to the above....