TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 1230
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....3-14 despite having credit of total amount of Rs. 43939860/- which included the cash deposit amounting to Rs. 38952038/- through its bank accounts maintained with Union Bank of India, Gangtok Branch. On the basis of information available the case of the assessee was reopened u/s 147 of the Act and notices were issued to the assessee requesting to file a return of income. No response was received from the assessee and when notice u/s 142(1) was again issued the assessee vide its letter dated 05.02.2021 and 10.02.2021 submitted that he is a franchise holder of BSNL at Gangtok, Sikkim and by enclosing a copy of writ petition filed by Association of Old Settlers of Sikkim and others wherein the assessee claims to be a member of above associatio....
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....settler to be assessed as Sikkimese as because he is engaged in the activities earning his income from the State of Sikkim. The return of income in AY 2013-14 was not filed as because his total taxable income of Rs. Nil by claiming exemption u/s 10(26)AAA of the Act. The Ld. Counsel cited a decision of Hon'ble Supreme Court in the case of Association of Old Settlers of Sikkim vs. Union of India reported in [2023] 146 taxman.com 271(SC) and submit that all the individuals domiciled in Sikkim up to 26th April, 1975 shall be entitled to exemption under the said provision from the current financial year i.e. 1st April, 2022 onwards. The Ld. Counsel also cited the order passed by the ITAT, Kolkata Bench in ITA No. 1346 to 1349/Kol/2024 for AY 20....
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....onstitution of India has been invoked and the law so declared in order to fill the vacuum has been treated as law declared by this Court under Article 141 untill a proper legislation is made. Hence, it has to be directed that till such amendment is made to the down the Explanation to Section 10(26)AAA of the I.T.Act, 1961, all individuals domiciled in Sikkim up to 26th April, 1975 shall be entitled to the exemption under the said provision from the current financial year i.e. 1st April, 2022 onwards. This direction is being issued in exercise of powers under Article 142 of the Constitution so as to eliminate discrimination and disparity in respect of the aforesaid category of Sikkimese, who subsequently have become citizens of India w.e.....
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....peals) has not entertained the plea of the assessee to determine about his status as a Sikkimese. In other words, both the authorities have not recorded any specific finding of fact about the status of the assessee for the purpose of assessment of his income. This Tribunal is not meant for deciding the title of any civil dispute or status of a person. In the absence of any finding at the end of both the revenue authorities, it is quite difficult to decide the status of the assessee being a Sikkirnese as claimed by the assessee. Apart from the above observation, we are of the view that Utpal Dorjee Yongda if a person is identified as a Subject of Sikkim on the appointed date, then, he and his family will be entitled for the benefit of sectio....
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.... he will grant the exemption to the assessee. (b) The id. Assessing Officer shall determine the taxable income because assessee was running a Petrol Pump, then all the cash deposits would not become his income. Assessing Officer has to determine the outflow of the amounts from those bank accounts which must have been travelled towards the Oil companies, who are supplying the Petroleum products to the assessee. Therefore, total cash deposits cannot be added to the income of the assessee. The id. Assessing Officer shall decide this aspect also and determine if any addition could be made or not. (c) The moment taxable income, if any, is determined, then id. Assessing Officer would decide whether exemption under section 10(26)(AAA) is to ....